05 April 2005
Legal & General Ventures ("LGV"), a leading private equity firm, announces its acquisition of the Verna Group (Verna), the market-leading healthcare manufacturer at a cost to LGV of approximately 60m Verna is a dynamic group of healthcare businesses employing 1,500 people with a turnover of approximately 59 million. Verna's core business, Vernacare, is the UK market leader in the provision of pulp and infection control products to the acute sector, supplying 75% of UK hospitals. Verna's fast-growing Care Shop subsidiary is one of the largest healthcare mail order suppliers in the UK, distributing over 8,000 healthcare and mobility products to nursing homes nationwide and through five retail outlets.
Verna will continue its successful growth story through extending its market leading position in hospital infection control and by focusing on the strategic shift of patients and resources to the primary care sector. Bernard Hatton has resigned as Chairman and Chief Executive after more than 30 years in the business. He is succeeded by Karen Haslam, a Director who has spent over 27 years at Verna. Chris Attrill will join the Verna Board as Finance Director.
Karen Haslam, incoming Chief Executive, commented: "The Board considered LGVs offer to be an excellent opportunity for staff and shareholders alike, reflecting Verna Groups strong performance to date and its potential for further growth. We are indebted to Bernard Hatton, under whose leadership the company has grown impressively and achieved a market-leading position in the provision of products and services into the healthcare sector. "Verna Group has built up a strong foundation for growth over the past seven years. Our success is based on having a clear vision, a focused strategy and a committed workforce both in Bolton and at our other sites around the UK. We have forged long-term contracts and partnerships with the NHS Executive, hospitals around the UK and our suppliers.
"The NHS is undergoing fundamental changes to its provision, infrastructure and the standard of care expected by patients. With LGVs support, we are ideally positioned to meet the needs of this newly structured marketplace."
Bill Priestley, Managing Director of LGV, said: "Verna Group is an ideal fit for the LGV portfolio. It has a market leading position through both its Vernacare and Care Shop businesses, operating in sectors with strong opportunities for growth. LGV brings capital, financial acumen and broad experience that will enable Verna Group to continue its expansion , particularly in the provision of infection control products to the NHS and the development of the Care Shop concept. LGVs buy and build focus is also ideal for Verna Group at this stage in the companys development."
Bernard Hatton remarked: "After 34 years with the company I am pleased with the outcome of the sale process and have every confidence in Karen Haslams ability to lead the company during its next stage of development." Senior debt has been arranged by Bank of Ireland and Scotia Bank. Grant Thornton corporate finance advised LGV on its acquisition of Verna, whilst PricewaterhouseCoopers advised the vendors.
