LAW firm Watson Burton has advised North care home firm Springfield Healthcare Group in successfully securing £4.4m of investment from the Business Growth Fund (BGF).
Yorkshire and Humberside’s largest independent provider of domiciliary care specialises in the delivery of personal and domestic care to the community.
Led by Yorkshire-based group chairman Graeme Lee, the company was established in 1967 as a single family-run care home and has since grown steadily, now providing care to nearly 2,000 clients each day.
Two equity investments will see Springfield further expand its operations across the region – £2.5m of the funds will be invested into Springfield Homecare, which delivers personal care to elderly people in their own homes.
Founded in Leeds in 1998, Springfield Homecare is now an approved, credited provider with seven local authorities in Leeds, Wakefield, Hull, East Riding, York, North Yorkshire and Sheffield.
The remaining £1.9m has been committed to Seacroft Care Village, to be used alongside existing funds to develop a purpose-built facility situated in the Seacroft area of Leeds.
Newcastle-based law firm Watson Burton provided a cross departmental team of advisors to successfully complete the transaction, who negotiated the terms and conditions of the funding agreement and provided advice in relation to banking, property and employment matters.
Corporate associate James Nightingale led the legal team and was assisted by banking partner Mark Lazenby, real estate associate Deborah Lazenby, corporate solicitor Helen Foy and employment solicitor Kerry Waters.
Nightingale said: “We are extremely pleased at the successful outcome of this matter. Graeme Lee has driven forward Springfield Healthcare Group because of his commitment to individualised care for older people, and his astute commercial management.
“The two investments by BGF will keep the quality and quantity of care provided for older people by Springfield Group consistently high as it grows.”
Graeme Lee said: “This £.4.4m investment from BGF is great news for Springfield and for the individuals to whom we provide care. It will enable us to grow and maintain high standards so that we can offer more hours of care and broader geographic reach.
“James and the team at Watson Burton have been have been a great asset to us in obtaining the investments. Their in-depth knowledge of our business, pragmatic advice and dedication to ensuring a successful conclusion of the transaction was invaluable.”
BGF is an independent company with capital of up to £2.5bn, backed by five of the UK’s main banking groups – Barclays, Lloyds, HSBC, RBS and Standard Chartered.
The announcement of the investment in Springfield Healthcare will see BGF take a minority stake in the business and join the existing board.
Springfield Healthcare and Seacroft Care Village are the third and fourth investments to be finalised by BGF’s Manchester-based team in two months, and the second involving Watson Burton. The investments follow the recent acquisition of Yorkshire- based Angels Homecare Services by Springfield Homecare Services. Watson Burton also advised on this purchase.