Clydesdale backs refinancing of Carewatch Care Services

Carewatch Care Services, one of the UK’s largest domiciliary care providers, has completed a £47m refinancing with support from Clydesdale Bank Corporate & Structured Finance.

Clydesdale Bank’s CSF team in London provided £21m of debt facilities, investing alongside incumbent bankers Barclays. This financing will replace the company’s existing debt facility and support its ongoing acquisition programme.

Carewatch, based in Bedfordshire, was acquired by Lyceum Capital Partners and the current management team from Nestor Healthcare Group plc through a management buy-in in 2008. Since the MBI, Lyceum and management have implemented a highly successful growth strategy and acquired 12 additional businesses. Carewatch now operates through 31 company-owned branches and 115 franchises throughout the UK.

Carewatch provides domiciliary care, enabling service users to remain in their own home should they require care rather than entering residential facilities. The main focus is on elderly care, however Carewatch are increasingly targeting more specialist services such as care for individuals with learning difficulties or mental health problems.

Established over 15 years ago, Carewatch is a highly regarded care provider and has the highest external quality rating of the larger domiciliary care providers in the UK.

Andy Oates, director with Clydesdale Bank’s CSF South team, commented: “Carewatch is an established and market leading care provider operating in the growing domiciliary care sector with a highly experienced management team. Given the fragmented nature of the market, this funding will allow Carewatch to continue to take advantage of consolidation opportunities and further grow the business. We are delighted to have this opportunity to work alongside Lyceum and management in supporting such a strong business.”