Monday 4th February 2008
Verna Group Holdings Limited, a market-leading healthcare business based in Bolton, has undergone a management buyout for an undisclosed sum, funded by a combined debt and equity package from Bank of Scotland Integrated Finance.
Verna is the UK's leading provider of infection control solutions to the hospital and care home sectors. The secondary buy-out will help Verna realise its growth ambitions of expanding into international markets as a global infection control business whilst maintaining its dominant market position in UK. An international sales push has been under way for some time with Verna keen to build their presence in Australia, USA & Canada, South Africa, Europe and the emerging markets.
Established over forty years ago, Verna now comprises 3 main divisions: Vernacare UK, Vernatech and Vernacare International. Vernacare UK, the biggest of the three divisions, supplies over 80% of the UK's hospitals with a total infection control solution for managing and disposing of human waste.
The buy-out sees Bank of Scotland become a minority shareholder of Verna alongside the management team which is led by Chief Executive Karen Haslam and Finance Director Chris Attrill. The transaction delivers an exit for private equity owner LGV Capital who bought the business in 2005.
Verna is the latest in a series of big North West investments for Bank of Scotland's Integrated Finance division over the past twelve months. In October, the Bank completed a £255m deal with Wigan-based Ainscough Crane Hire, which followed a £41m buyout of Macclesfield flooring accessories and carpets business Gradus Group and the £35m buyout of Middleton valve maker Bifold Fluidpower.
The transaction was structured and arranged for Bank of Scotland Integrated Finance by Catherine Houghton, James Argyle, Tavia Sparks, Christopher Hopwood and Donald Fowler. Bank of Scotland Integrated Finance was advised by Ali Sharifi of Grant Thornton and Jonathan Watkins, Yunus Maka and Matt Christmas of DLA.
A PricewaterhouseCoopers LLP north west deal team, led by Colin Gillespie and Stuart Warriner, has advised Verna on its sale to Bank of Scotland Integrated Finance.
Karen Haslam, Chief Executive of Verna said:
"I am delighted to be leading Verna Group into the next phase of its development, backed by Bank of Scotland Integrated Finance. We have exciting plans for the business to expand our portfolio of infection control products and to grow our international sales."
Catherine Houghton, Director of Bank of Scotland Integrated Finance in Manchester said:
"Over the last 2 years Verna has been through a significant period of reorganisation. This transaction now provides Karen and her team with the stability required to focus resource on the international healthcare markets and some exciting new product development opportunities in the UK. I expect that over the next few years Verna will transform itself from being a UK infection control businesses to a truly global player."
Ali Sharifi, Corporate Finance Partner, Grant Thornton UK LLP in Manchester, said:
"Bank of Scotland Integrated Finance is the perfect partner for Karen and Chris to achieve yet further success from this established infection control company."
Nick Jones, corporate finance director, PricewaterhouseCoopers LLP in Manchester, said:
"Verna is a great example of a successful North West business; we are delighted to have advised on its sale for the second time in 3 years."
Notes to Editors:
Bank of Scotland Corporate, part of HBOS plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. Bank of Scotland Corporate employs over 8,300 employees. With experience across many areas of corporate finance, including Integrated Finance, Joint Ventures, Structured Finance, Acquisition Finance, Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an expert pool of professionals with proven track records. Since launching its ground-breaking Integrated Finance unit back in 2000, the Bank has transacted over 100 deals with a total funding in excess of £10 billion. Today Bank of Scotland Integrated Finance provides funding to more mid-market MBOs than any other equity provider in the UK by providing a unique one-stop financing solution which meets all the funding requirements for a business undergoing a transaction.
