ISIS Equity Partners completes follow on investment in Care Management Group Limited

ISIS Equity Partners plc (ISIS) is pleased to announce the completion of two acquisitions in the last ten weeks by Care Management Group, its investee in the specialist residential care sector.

ISIS backed the original MBO of CMG in March 2003, with an aspiration to grow through a combination of organic and acquisition led growth. CMG has made significant progress over the last 18 months, opening five newly developed homes over the period. The company also has a further six homes in various stages of development, and a strong pipeline of additional opportunities that will continue to drive growth into 2005. CMG's two acquisitions have been completed against this backdrop and together with the newly developed homes, collectively increase CMG's bed capacity to in excess of 400, a 20% increase since the MBO.

CMG's first acquisition, of Ceres House, was completed in June 2004. Ceres provides care and education for around 30 children and adults with severe physical and learning disabilities and complex health needs. These services are provided via five residential homes, a day centre and a school, all located in the Brighton and Hove area, where CMG already operates.

CMG's second acquisition, of CCA, was completed just ten weeks later in August 2004. CCA provides residential care for around 30 adults with a range of learning disabilities and challenging behaviours. The services are provided via six residential homes, based in and around the Newport area of South Wales. The acquisition of CCA represents CMG's first investment in the South Wales market, an area where it proposes to continue to expand over the next two years.

In executing these growth plans, ISIS and Barclays Leveraged Finance (original funders of the MBO) have collectively injected an additional £15m of funding into CMG, with a clear intention to continue to support the growth aspirations of the company moving forward.

Liz Jones of ISIS Equity Partners said: "Since our initial investment 18 months ago, CMG has delivered on all its objectives combining strong growth with an absolute commitment to providing high quality care for its residents. The completion of the two recent acquisitions represents a substantial step change in the development of CMG, and we look forward to continuing to support CMG's expansion with additional investment."

Michael Buckingham, CEO of Care Management Group, said: "The recent acquisitions of Ceres and CCA make valuable contributions to CMG's growth plans at both the property and resident level. Residents acquired via these acquisitions largely mirror the needs on which CMG was founded and has subsequently grown its enviable reputation. The clear and highly supportive backing of ISIS was a significant feature in getting these acquisitions to completion."

Published: 15 October, 2004