Sovereign Capital, the UK’s most active private equity investor in the healthcare sector, has bought Positive Lifestyles by its portfolio company Alkare Holdings for an undisclosed sum.

The acquisition will strengthen Alkare’s presence in Wales.

Established in 2001, Positive Lifestyles is the leading independent provider of specialist residential healthcare for people with learning disabilities or mental health problems in Wales. The company has grown significantly in a very short space of time to be the leading Cardiff-based adult care provider. At the time of the sale, Positive was provider of nine homes for up to 32 adults often requiring intensive support.

Alkare was purchased by the UK private equity buy & build specialist in February 2006. The bolt-on acquisition of Positive Lifestyles highlights Sovereign’s focus on developing the business it backs through further acquisitions as well as organically. Sovereign has, in fact, made 27 follow-on investments over the past two years.

Sovereign director Dominic Dalli commented: “Both Positive and Alkare have established reputations for high standards and quality of care with a specialist client group. Together they are well positioned to work in partnership with their Local Authority customers and support clients in the step-down from hospital.”

Capital Law was lead adviser to the vendors. Nicola McNeely, partner in the corporate and commercial team, headed up the deal.

“We were introduced to the business in 2002 via business support agency, Entrepreneur Action,” McNeely said.

“This is a great example of a high growth business, achieving significant growth, and the attention of investment companies thereby realising a sale within five years of its incorporation. We worked with Jane Taylor, MD of Positive Lifestyles, to prepare the business for sale some time in advance of completion of the deal with Sovereign Capital.

“We brought Broomfield & Alexander in 18 months ago to work with Positive Lifestyles in preparing for the sale.”

Broomfield & Alexander Limited acted as the sole financial advisers to the vendors. Corporate finance directors Seamus Gates and Mark Hislop led the advisory team with strategic tax advice provided by tax director Leighton Reed. Gates commented: “The team has worked closely with Jane Taylor to prepare the business for sale and we are delighted with this successful outcome.

“By careful structuring of the deal and advice on the best timing, our team was able to ensure that the vendors achieved their price expectations and minimised their tax burden.”