TDC provides funding for Vernacare’s acquisition of Synergy Health (HCS)
Tosca Debt Capital (TDC) has provided 2nd lien debt facilities to support the acquisition of Lancashire-based Synergy Health Healthcare Consumable Solutions (HCS) by North West medical products manufacturer Vernacare for an undisclosed sum.
Vernacare, a provider of single-use infection prevention systems for the healthcare sector, employs 180 people in the UK and overseas. Its products are used by more than 94% of NHS Trusts and sold to over 50 countries and HCS manufactures products for wound care and surgery, employing around 100 across its HQ and production facility in Chorley and a warehouse in Preston. HCS will operate under the Vernacare brand going forwards.
In October 2015, Vernacare was backed by investment firm Palatine Private Equity as it embarked on a mission to grow its global footprint.
Matt Miller, chief exec of Vernacare, said: “This acquisition will significantly increase the size of our business, and demonstrates the commitment of our investors, Palatine Private Equity, to the continued growth of Vernacare.
“In particular, there is huge potential for further overseas growth, where we can expand Vernacare’s strong market presence by introducing new products. It will also give us the opportunity to work more closely and broadly within the NHS and UK independent healthcare markets, enhancing our market position.”
Richard Williams, a partner at TDC, added: “We are delighted to have been able to support a strong regional business in executing its growth and acquisition strategy. This transaction represents the first deal to be funded out of Tosca Debt Capital Fund II, which held its first close last month at c.£100m and is expected to have a final close at c.£250m before the end of the year.
“Our experienced team of eight professionals, all based in Manchester, remain committed to regional businesses and focussed on a relationship led delivery. This approach is resonating with the local business community and investors alike, as has been demonstrated by the full deployment of our £100m Fund I during 2016/17 and the successful fundraising for Fund II during the last few months.”
Andy Lees, a partner at Palatine Private Equity in Manchester, commented: “This acquisition is a strategic move for Vernacare and provides the business with a number of expansion opportunities.
“The addition of HCS allows Vernacare to broaden its product range and branch out into new areas of the healthcare industry to support further growth. The company already has a large presence in the global market, and this new offering will only boost its exporting opportunities.”
Posted by
Richard Williams
Partner