HCRG (Health Care Resourcing Group), the market leading recruitment group, has today announced the sale of its homecare provider businesses CRG Homecare and Allied Healthcare.
HCRG acquired Allied Healthcare in 2018, when it was on the brink of financial collapse. Following a swift turnaround and investment in people, Twenty20 Capital successfully merged Allied with its existing homecare brand (CRG Homecare), focussing on increasing its CQC rating, quality and growing group profitability. Both businesses now have a total revenue of £75m, establishing the group as one of the top five homecare businesses in the UK.
Operating throughout the COVID-19 pandemic, the merger of the two businesses saw care worker hours increase to 80,000 per week. Twenty20 Capital’s core investment philosophy of supporting and augmenting the management team to execute challenging strategic and operational decisions created a highly attractive, scaled and profitable platform in this sector.
The same management team will lead the brands, which will continue to operate as normal. Changes are not expected to the services provided and local branch teams and care workers will continue to provide high quality care to the vulnerable individuals in their communities as usual.
HCRG is part of Twenty20 Capital, who agreed the final sale which has created the second largest homecare provider in the country and provided strong returns for management and shareholders.
Ian Munro, group CEO and founder at HCRG, said: “We are delighted to announce the sale of our homecare group (comprising of CRG Homecare and Allied Healthcare). After acquiring Allied Healthcare, we worked closely with the management team and were quickly able to return the business to breakeven trading and successfully raised the CQC rating and drove a plan to merge it with our CRG Homecare business. This increased profitability and allowed us to proudly support the UK community by delivering outstanding care services during the toughest months of the COVID-19 pandemic. This has been a real success story in a challenging market.”
Tristan Ramus, chairman at Twenty20 Capital, said: “Twenty20 Capital is proud to be able to announce the transfer of ownership of our homecare group. Having acquired Allied Healthcare, on the brink of insolvency, the business has been transformed during our period of ownership. The core principles of Twenty20 Capital’s investment philosophy have driven an outstanding shareholder return in under three years. Supporting and augmenting the management team to execute challenging strategic and operational decisions has created a highly attractive, scaled and profitable platform in this highly competitive homecare services market.”