Raphael Healthcare

Deal summary

Raphael Healthcare is a high quality provider of specialist mental health services. The company operates an award-winning, low secure mental health service for women at its Farndon unit in Nottinghamshire. It has a site with planning permission for a Tier 4 CAMHS unit at Briars Hey in Lancashire. The strength of the clinical model and outcomes, and strong relationships with NHS commissioners and other key stakeholders have driven excellent occupancy levels and financial performance at Farndon.

The business, owned by three private individuals, had been through a successful refinancing in 2015 when a legacy private equity house fully exited the business. The shareholders had received a number of unsolicited approaches for the business over a short period of time and, in September 2016, appointed Catalyst to consider and evaluate the strategic options for the business. We were chosen by the shareholders due to a combination of our transaction execution expertise and deep sector knowledge, which includes relationships with the key strategic acquirers in the sector.

What difference did we make?

The business had received a number of pre-emptive approaches from strategic acquirers over recent years. In our strategic options review, we pre-screened a focused list of trade buyers. By using our understanding of the business, shareholder objectives and potential buyers' rationale, we were able to focus the discussions on a small number of interested parties.

In parallel with this initial buyer contact, we worked extensively with the management to prepare an information suite and dataroom for bidders and to stress test the business to ensure it was prepared for an intensive diligence process.

As discussions progressed, it became clear that Elysium Healthcare was the most compelling proposition. We negotiated detailed Heads of Terms and completed the deal, largely to the terms agreed, within six weeks of signing the Heads.

The acquisition of Raphael offers an exciting opportunity to enhance the geographic positioning of Elysium and to expand its specialist division. It also allows Elysium to capitalise on the clinical reputation of Raphael at the Farndon unit and to operationalise the Briars Hey facility.

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What our client said
"Huge thanks to Catalyst for guiding us through this extremely complex process. Their help, advice and support was instrumental in achieving the excellent outcome for all concerned." Claire Thomson, CEO
Raphael Healthcare