Souter Investments completes sale of Baywater Healthcare

Souter Investments completes sale of Baywater Healthcare

Souter Investments, the family investment office of Sir Brian Souter, has sold its majority stake in Baywater Healthcare UK to Bastide Group, a specialist in the sale and rental of home medical equipment in France.

Baywater delivers oxygen-therapy, sleep apnoea therapy and non-invasive ventilation therapy services to patients in the home. It is the only independent company serving the UK market, alongside three major gas group subsidiaries.

Souter Investments backed the acquisition of Baywater, a buy-in management buy-out carve out of Air Products’ Homecare operations in the UK and Ireland, in November 2013. The deal was originated by Duke Street, the European mid-market private equity house. The company sold its Irish operations to Air Liquide in August 2015.

Adam Sullivan, CEO of Baywater commented: “The four years we have spent with Duke Street and Souter have been exciting and rewarding – they have been demanding while constructive and supportive.  My team and I are proud of the business we have built together - the strength of which has been recognised by Bastide.”

John Berthinussen, investment director at Souter Investments added: “Adam and his team at Baywater have built a strong, market leading business. Supported by Souter and Duke Street, they have delivered on an ambitious growth and business transformation strategy, whilst at the same time supporting the changing NHS and providing high quality, cost effective healthcare services to patients with long term conditions. Baywater is well positioned to look to the future and enter its next stage of development as part of the Bastide group, themselves healthcare specialists. We look forward to hearing of the company’s continued success.”

Charlie Troup, managing partner at Duke Street, said: “Baywater has been a classic Duke Street investment in healthcare, a core sector for the firm. With the dual trends of an ageing population and an increasing need for the NHS to manage costs by providing patients with care at home, we and Souter have worked successfully with management to raise the quality of care, improve logistics, invest in stronger operational and logistics capabilities, thereby delivering significant growth in profitability. We wish Bastide Group every success with Baywater’s next phase of growth.”

The sale of Baywater crystallises a substantial exit for its shareholders, with the undisclosed consideration realising more than a 5x return for Souter Investments and Duke Street, and comes during a period of high activity at Souter Investments.

Sir Brian Souter said: “I am delighted that Souter Investments continues to invest in and build strong businesses, while generating strong returns in the process. We remain one of the most active private equity houses based in Scotland, our portfolio is in good health, and I am confident we will continue to see many interesting investment opportunities and generate superior returns in the future.”