M&A Deal Summary

The Blackstone Group Acquires Southern Cross Healthcare

On September 16, 2004, private equity firm The Blackstone Group acquired healthcare services company Southern Cross Healthcare from Horizon Capital UK for 2.3B USD

Acquisition Highlights
  • This is The Blackstone Group’s 2nd transaction in the Healthcare Services sector.
  • This is The Blackstone Group’s 47th largest (disclosed) transaction.
  • This is The Blackstone Group’s 4th transaction in the United Kingdom.
Investment Fate
  • Southern Cross Healthcare went public in 2006.

M&A Deal Summary

Date 2004-09-16
Target Southern Cross Healthcare
Sector Healthcare Services
Buyer(s) The Blackstone Group
Sellers(s) Horizon Capital UK
Deal Type Secondary Buyout
Deal Value 2.3B USD

Target

Southern Cross Healthcare

Darlington, United Kingdom
website
Southern Cross Healthcare is a group of care homes across the UK providing elderly care with high standards of care for the elderly & physically challenged.

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Buyer(S) 1

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York City.


DEAL STATS #
Overall 75 of 320
Sector (Healthcare Services) 2 of 6
Type (Secondary Buyout) 4 of 73
Country (United Kingdom) 4 of 26
Year (2004) 9 of 13
Size (of disclosed) 47 of 167
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-03 Nalco

Naperville, Illinois, United States

Nalco is a sustainability services company focused on industrial water, energy and air applications, delivering significant environmental, social and economic performance benefits to their customers. Nalco helps customers reduce energy, water and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line. Its comprehensive solutions contribute to the sustainable development of customer operations. More than 12,000 Nalco employees operate in 150 countries supported by a comprehensive network of manufacturing facilities, sales offices and research centers to serve a broad range of end markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-13 Cineworld Cinemas

Chiswick, United Kingdom

Cineworld Cinemas Ltd. is a cinema group focused on showing a wide variety of content such as Bollywood and Live events; including Opera, Ballet and Rugby in 3D. Cineworld participates in the Tesco Clubcard programme and operates the only cinema subscription service in the UK, the Unlimited Card. Cineworld Cinemas was formed in 1995 and is based in Chiswick, United Kingdom.

Buy $599M

Seller(S) 1

SELLER

Horizon Capital UK

London, United Kingdom

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1999
PE ASSETS 800M GBP
Size Large
Type Sector Agnostic
DESCRIPTION

Horizon Capital is a private equity firm that targets investments in middle-market companies valued up to £100 million. The Firm has a preference for UK-headquartered businesses and will consider opportunities in the technology services, software, data/analytics, and business services sectors. Prospective transaction situations include buyouts with potential for consolidation. Horizon Capital was formed in 1999 and is based in London.


DEAL STATS #
Overall 1 of 27
Sector (Healthcare Services) 1 of 2
Type (Secondary Buyout) 1 of 10
Country (United Kingdom) 1 of 24
Year (2004) 1 of 2
Size (of disclosed) 1 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-01 Clinovia

Harlow, United Kingdom

Clinovia was the leading provider of home healthcare services in the UK, principally to the NHS. It needed restructuring and revival but had retained excellent customer relationships. It was one of the few providers of a much needed service. In 2006 Bupa acquired Clinovia for £87.7 million.

Buy £33M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-12-01 Asquith Court Schools

Berkhamsted, United Kingdom

Asquith Schools was one of the UK’s largest single private day schools group consisting of nine schools, educating around 2,500 pupils aged between three and 16 years. The business’ strength lay in its spread of schools, the quality of operations and in its asset base and one of the best management teams in the sector.

Sell £61M