Newcastle-based Advanced Healthcare Group has expanded its Scottish operations after acquiring mobility-equipment providers Able Care and City Mobility in a deal backed by a six-figure investment.
The healthcare and mobility investment company said the acquisitions build on its purchase of Dundee-based Allardyce Healthcare last year, further increasing its reach in the Scottish market. Able Care and City Mobility have more than 150 years of combined experience serving customers and communities across Scotland.
Businesses retain their brands
Both Able Care and City Mobility will continue to trade under their existing names. Their current management teams and employees are also set to remain in place, with Advanced Healthcare Group aiming to preserve the businesses’ established local relationships and reputations.
The transaction was supported through a six-figure investment from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II.
Advanced Healthcare Group is led by Gary Lynch, alongside healthcare investors James Oates and Ross Tomkins. David Lynch, who previously co-founded Lynch Healthcare, is also involved in the group. Lynch Healthcare grew into a major mobility supply, manufacturing and maintenance business before a private-equity exit in 2020.
Growth plans
James Oates said the acquisitions marked a significant step in the group’s plans to create a larger healthcare and mobility business.
“These acquisitions represent another important milestone in our strategy to build a leading healthcare and mobility group with the scale, expertise and resources to serve customers across the UK and beyond.”
He added: “Able Care and City Mobility have built exceptional reputations over many decades, and we’re committed to supporting their continued success while preserving the values and customer relationships that have made them so highly regarded.”
David Lynch said the deal would support both firms’ continued development while recognising their track records in Scotland.
“Adding Able Care and City Mobility to the Advanced Healthcare Group allows us to honour the fantastic legacy of both businesses while helping them continue to evolve and grow across Scotland.”
Lynch said NEL Fund Managers had been a suitable investment partner, describing the transaction process as “seamless from start to finish”.
Investment backing
Michael Williams, investment executive at NEL Fund Managers, led the investment and said Advanced Healthcare Group combined sector knowledge with a clear expansion strategy.
“They understand how to build successful businesses while preserving the heritage, reputation and customer relationships that have made companies such as Able Care and City Mobility successful.”
He added that NEL was “delighted” to support the acquisitions and looked forward to the group’s continued growth.
Sarah Newbould, senior investment manager at the British Business Bank, said the funding would help the group progress its ambitions while supporting wider economic activity.
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“Through investments like this, we’re supporting ambitious businesses to grow, strengthening regional economies and helping to create new opportunities across the North.”
The opportunity was referred to NEL by Abu Ali of FRP Advisory. Sheppard & Wedderburn advised Advanced Healthcare Group, CMS acted for NEL, and BBM Solicitors advised the sellers.
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Use a professional, people-led image of a mobility-equipment specialist assisting an older customer with a mobility scooter, adjustable chair or walking aid in a bright showroom or home setting. It would visually convey the customer-service focus of the two acquired Scottish businesses while avoiding a generic corporate deal image.
