The Co-operative Bank’s Bristol corporate banking centre has backed the management buy-out (MBO) of specialist residential and education group Phoenix Child Care.
The bank provided a total of £5.26m via a cashflow loan and commercial mortgage towards the MBO funding package, which enabled Phoenix to replace its existing debt.
London-based private equity investor Ashridge Capital has invested £3.4m in return for a majority stake in the business.
Also involved in the deal were Mark Naughton and Martin Gallacher of accountants Grant Thornton’s Bristol office, who advised the shareholders on the transaction, and Will Whitt, partner at the Bristol office of law firm Foot Anstey, who provided legal advice to the bank.
Phoenix, based in Barnstaple, Devon, is the South West’s leading independent provider of specialist residential care and education to young people with special needs through schools and care homes in Devon and Cornwall.
The MBO allows one of Phoenix’s founding directors Ron Sens to exit, leaving the existing management team of managing director Keith Burley and finance director Paul Cann in place and focused on growing the business.
The Co-operative Banks’ Bristol-based business development manager Chris Mapp said: “Our financial support for the MBO of Phoenix Child Care and replacement of its debt is another example of now the bank continues to support companies seeking to grow and develop their business.
“We were delighted to partner with Ashridge Capital to fulfil the ambitions of the new management team and to support the genuinely invaluable work of Phoenix with children and young adults in the South West.”
Ashridge Capital founder and former chief executive officer of Kaupthing Capital Partners, David Sherratt, added: “Phoenix is very well positioned in an attractive market in which we have a depth of experience.”
Mr Burley said the financial backing supported Phoenix’s aim over the next couple of years to double its workforce and expand into new territories.
Financial due diligence was performed by David Main, a partner in the Cheltenham office of chartered accountants and business advisers Hazlewoods.
Pictured, back row left to right, are Martin Gallacher and Keith Burley, and foreground, Paul Cann and Chris Mapp
