3i's investment in Westminster Health Care ("WHC"), delivered a money multiple of 4 times 3i's original investment and an internal rate of return of over 80% upon the sale of the company to Barchester Healthcare for £525 million, in October 2004.
In 2002, 3i led the £267 million buyout of WHC, the third largest UK high quality care home operator with 5,680 beds in 88 care homes, backing Tony Heywood as chief executive and introducing Nick Irens as chairman.
3i was attracted by the experience and track record of the management team, the quality of WHC's estate and its strong brand and reputation.
Our in-depth understanding of the healthcare sector allowed us to add value by working in partnership with the management team to develop a number of successful specialist care operations. These initiatives, together with organic growth, enabled WHC to outperform its buyout plan from the outset, with profits rising by over 60% during the two and a half years of 3i's ownership.
Prior to exit, 3i positioned the business with key potential buyers, engineering a closely contested auction process won ultimately by Barchester Healthcare, creating one of the largest healthcare groups in the UK.
