Cambridge Health Group acquires Cornerstone Healthcare

Dubai-based operator of healthcare and education companies Amanat Holdings has announced that its subsidiary Cambridge Health Group has acquired Cornerstone Healthcare Holding, a provider of specialist high-acuity care, from private equity firm Ignite Growth.

The consideration comprises an initial enterprise value of £71 million, with up to a further £5 million of deferred consideration linked to performance, implying a total potential enterprise value of £76 million.

Cornerstone operates four specialist care homes with 283 beds across the South of England, providing care for individuals with complex dementia, neuro-progressive conditions, severe mental illness, acquired brain injury and neurorehabilitation needs. The business has relationships with NHS’s integrated care boards and local authority commissioners. Cornerstone’s management team, led by chief executive Paul Hayes, will continue to lead the business.

Amanat stated that the acquisition was funded through internal resources and is expected to deliver returns above Cambridge Health Group’s investment hurdle rate, adding that it expands Cambridge Health Group’s specialist capabilities and takes its capacity beyond 1,000 beds, supporting its new medium-term target of more than 1,500 beds.

John Ireland, chief executive of Amanat Holdings said: “This acquisition demonstrates how we are translating Amanat’s growth strategy into identifiable commercial and operational opportunities. Cornerstone is a leading specialist care business with an experienced team, complementary clinical capabilities and a clearly defined growth strategy.

“By combining Cornerstone’s expertise with Cambridge Health Group’s established operations and growth pipeline in the GCC, we are building a larger, more diversified specialist healthcare business. We will continue to pursue opportunities selectively, with a focus on disciplined capital allocation, returns that meet our investment criteria and sustainable value creation for shareholders.”

Connell Consulting carried out vendor commercial due diligence for the deal.