MHA Moore and Smalley advises on vulnerable care acquisition

A Manchester-based healthcare investment company has acquired a £4.5m care and education provider as part of its ongoing growth strategy.

Tristone Healthcare, a subsidiary of Tristone Capital, has acquired Southampton-based Sportfit Support Services which offers care and education services to vulnerable young people including those with learning disabilities and requiring supported living.

The acquisition is one of a number planned this year as Tristone targets £35m revenues and £7.5m EBITDA in the next 18 months through its buy, build and hold strategy.

Tristone was advised by MHA Moore and Smalley’s Corporate Finance and Tax Advisory teams who provided financial and taxation due diligence support alongside wider deal advisory services.

MHA Moore and Smalley’s acquisition team was led by tax partner David Bennett and corporate finance director Simon Carruthers.

Simon Carruthers said: “The Tristone team are passionate in their plan to build a significant social care group delivering positive social change through the alignment of commercial returns with social impact.

“Assisting the team to shape and deliver a transaction that will help Sportfit progress to the next level and provide exceptional support for even more disadvantaged young people has been extremely pleasing.

“This is the second transaction in the social care sector that our Corporate Finance team has helped deliver from start to finish during lockdown, based on the team’s deep understanding of and strong credentials in children’s and young person’s services in particular.”

The deal increases the number of vulnerable young people currently supported by Tristone businesses to 98.

Tristone founder and CEO, Yannis Loucopoulos, said: “Sportfit is a fantastic business that perfectly aligns with our values and helps us further deliver on our purpose of providing safe, essential care, while enriching lives through education for vulnerable children, young people and adults.

“It’s an excellent example of our strategy of acquiring profitable social care businesses with a track record of success and a strong management team.”