Omega Healthcare Investors and Foundation Partners have acquired UK care home operator Runwood Homes for £615m.
Runwood’s portfolio of 55 care homes will be managed by Foundation Partners’ Evera Living care platform, which will be led by newly appointed CEO John Forrest, who was formerly COO of Spire Healthcare, and Vishul Seewoolall, formerly COO of Signature Care.
The joint venture partners intend to grow the Evera Living portfolio further and bring high quality care to more residents and families across the UK.
Ben Puddle, co-founder and managing partner at Foundation Partners, said: “The demands on the UK care sector require specialist, flexible and patient capital. The strength of this partnership is evergreen capital that shares our long-term perspective. Together, we want to build a multinational, multi-service care platform by investing in homes, people, systems and care technology, always with residents and families first. We are thinking in decades, not towards a short-term exit.”
Vikas Gupta, chief investment officer at Omega Healthcare Investors, added: “This is a landmark investment that reflects Omega’s ambition to back outstanding healthcare businesses over the long term and our commitment to the UK care sector. Omega was selected through a highly competitive process and we believe our strength lies not only in the scale of our capital, but in its flexibility, dynamism and permanence. Alongside Foundation Partners and Evera’s leadership, we see the opportunity to support a substantial UK care business with the capital and capabilities for its next chapter.”
Forrest said: “This is an exceptional opportunity to build a truly best-in-class, care-first national operator. We will work closely with the teams in the business, strengthening operations from the ground up, with regulation, compliance and high-quality care at the heart of everything we do. Residents and families come first. I am excited to begin, alongside the outstanding team we have assembled at Evera Living and in the meantime, I remain fully committed to ensuring a smooth and orderly transition for the group, with residents and colleagues at the heart of every decision.”
Gordon Sanders, CEO and founder of Runwood Homes Senior Living, added: “Developing Runwood Homes has been an extraordinary journey and one of which I am immensely proud. From the outset, I have always believed in putting quality first and, above all, that our people are at the heart of our business. I am incredibly proud of everything Runwood Homes and our dedicated team have achieved over the years.
“Today, the company is operating from a position of strength, both financially and from a regulatory perspective, which is a testament to the commitment and hard work of everyone across the organisation. As Runwood Homes enters its next chapter, I would like to extend my very best wishes to Omega and Foundation and wish them every success for the future.”
Julian Evans, partner and global head of healthcare at Knight Frank, said: “Knight Frank is delighted to have advised on the £615m sale of Runwood Homes to Omega Healthcare Investors. Founded by Gordon Sanders 40 years ago, who has been a client of Knight Frank’s for nearly 25 years, Runwood Homes has grown into an outstanding elderly care business comprising 55 facilities and 3,930 registered beds across England. The transaction marks an exciting new chapter for the business, with Foundation Partners taking over operations under a lease arrangement with Omega, providing a strong platform for its continued success.”
