Healthcare buyout marks Palatine’s first Fund III deal

Palatine Private Equity has completed the management buyout of Vernacare, the UK’s market leading provider of single use infection control systems to the healthcare sector. This is Palatine’s first deal from the £220m Fund III which closed in June this year.

Based in Bolton, Vernacare employs over 200 staff across the UK and North America and sells to a varied customer base in more than 50 countries worldwide.

The company manufactures and supplies a range of products including the Vernacare system, which is the most widely adopted single-use disposable system in the UK healthcare market. It is comprised of moulded fibre containers used for toileting, washing, bathing and caring for patients throughout their stay, in addition to Vortex disposal units that hygienically dispose of the containers and contents.

Vernacare is the market leader in the UK supplying to 260 NHS Hospital Trusts, and has an established presence in the rest of Europe, Canada, Australia, and the Far East. The company is currently pursuing further international growth opportunities and has recently signed an agreement with a leading healthcare provider in China as part of the Chancellor’s recent trade visit.

The deal sees Palatine, which typically invests between £10m and £30m of equity, take a majority share in Vernacare. The firm will work with the management team, which is led by CEO Matt Miller and CFO Paul Wright, to grow product sales and accelerate the expansion into overseas markets.

Debt facilities for the transaction were provided by the Financial Sponsors and Corporate Transactions teams at The Royal Bank of Scotland and Nat West (David Amos and David Jamieson).

Partners Ed Fazakerley and Andy Lees led the deal, along with investment manager James Winterbottom. Fazakerley and Lees have joined the company board as non-executive directors.