Mid-market private equity firm Next Capital has snapped up a majority stake in Country Care Group, a supplier and retailer to the assisted living and aged care sectors, in a deal valuing the company at about $150 million.
The firm has partnered with CCG founder Rob Hogan, and his son and new chief executive Tom Hogan, taking a 51 per cent stake, and making Next the first outside investor.
A year ago CCG, Rob Hogan and a former employee were acquitted of criminal cartel offences bought by the Commonwealth after a competition regulator’s investigation relating to alleged price-fixing.
CEO Tom Hogan told The Australian Financial Review the case was disruptive to the business since the family had to shovel a lot of money into the case. But there was now a silver lining in finding a new partner, Next.
“[The case] restricted our cash flow to invest into the business as far as acquiring new stores and also expanding from greenfield sites because most of our cash went into the ACCC process,” he said.
“We’re happy with where the business is at today. It’s a very successful business. The Next team are excited to be a part of it and help us get to that next level.”
The family-run business, founded in 1997, has a strong regional focus. It is a key supplier to government agencies such as the Department of Veterans’ Affairs, and distributor of products ranging from mobility aids, specialist chairs and seats to lifters and slings. It also works alongside occupational therapists and architects for home modifications services.
With fresh equity and debt funding, Tom Hogan said the plan was to reach 75 stores from its 18 sites over the next three to five years. That will come from a mixture of buying stand-alone retailers, subcontractor supplier stores, and it will also look for new greenfield store sites.
Next Capital deal makers James Murphy and David Browne led the transaction. Mr Murphy said Next aimed to capitalise on the key thematic of a growing ageing population…see full article.
