Healthcare group expands with double acquisition

A healthcare and mobility operator has expanded its Scottish footprint with a double acquisition backed by six-figure funding.

Newcastle-based Advanced Healthcare Group has bought mobility equipment providers Able Care and City Mobility, which have more than 150 years’ combined history of serving Scottish communities.

The deals were supported by NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II.

They follow Advanced Healthcare’s acquisition of Dundee-based Allardyce Healthcare last year.

As part of the deal, Able Care and City Mobility will retain their existing brands, management teams and employees, and maintain existing products and services.

Advanced Healthcare says bringing the businesses into the group will provide additional investment and growth opportunities, while creating operational efficiencies and supporting further expansion across the UK.

The group is led by Gary Lynch alongside healthcare investors James Oates and Ross Tomkins, as well as David Lynch, who co-founded Lynch Healthcare in 2009.

David helped grow Lynch Healthcare into a significant mobility supply, manufacturing and maintenance business before its private equity exit in 2020.

James said: “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.

“Able Care and City Mobility have built exceptional reputations over many decades, and we’re committed to supporting their continued success.

“It was a pleasure to work with James, Michael and the wider NEL team on this transaction.”

David added: “Adding Able Care and City Mobility allows us to honour the fantastic legacy of both businesses, while helping them continue to evolve and grow across Scotland.

“I’ve worked with NEL on a number of investments over the years, so I knew they would be the right partner for this transaction.”

The latest investment was led by Michael Williams, investment executive at NEL Fund Managers, following a referral from FRP Advisory’s Abu Ali. 

Legal support was provided by Sheppard & Wedderburn for Advanced Healthcare, CMS for NEL and BBM Solicitors for the sellers.

Michael added: “The Advanced Healthcare team combines significant sector expertise with a clear strategy for growth. 

“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.

“We’re delighted to have supported these acquisitions and look forward to seeing the business continue its ambitious growth journey.”

The £660 million Northern Powerhouse Investment Fund II (NPIF II) fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at British Business Bank, added: “The Northern Powerhouse Investment Fund II is helping Advanced Healthcare Group take an important step forward in its growth journey. 

“Through investments like this, we’re supporting ambitious businesses to grow, strengthening regional economies and helping create new opportunities across the North.”

NEL Fund Managers also manages NPIF II – NEL Smaller Loans, which provides investments of between £25,000 and £100,000 to support the growth ambitions of emerging and established businesses.

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