PRINT THIS PAGE

Electra Partners Europe to sell Ashbourne Healthcare to HBOS

The integrated finance unit of UK banking group HBOS has come close to winning the auction for care homes business Ashbourne Healthcare, being sold by pan-European buy-out firm Electra Partners Europe. The deal, valuing Ashbourne at about £275m, could be announced before the end of the week, according to the Financial Times.

If the transaction is completed HBOS will have outbid private equity competition from Blackstone and Allianz Capital Partners.

Ashbourne Healthcare has carried out a series of acquisitions since Electra's buy-in in 2003. The business has become the fourth largest care home operator in the rapidly consolidating UK market.

The healthcare sector has been one of the most active parts of the European private equity market in recent quarters, throwing up a string of sizeable deals. Favourable demographics and the expectation of ongoing consolidation in the sector have been the main drivers.

Electra Partners Europe invests in mid-market transactions up to €400m enterprise value, predominantly in the UK and Germany. The firm is expected to launch formally a new buy-out fund with a target of up to €1.25bn later this year.

Copyright © 2005 AltAssets