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BGF has secured a strong return on its investment in Springfield Healthcare Group, a first mover in the UK care village model, as it exits the partnership with the sale of six care villages.
Starting out as a single care home, Springfield first secured investment from BGF in 2012, to expand its care village model into more locations across the North of England. Now, Springfield Healthcare operates six care villages across the Yorkshire region, providing more than 500 registered care beds and employing 700 people.
During the investment period, BGF provided a total of £31 million of growth capital (across multiple funding rounds) to support the creation of new care homes, including a multi-million-pound renovation of the former Terry’s Chocolate headquarters in York. Springfield’s expansion has supported the creation of 700 new jobs in the region.
Graeme Lee, Founder and CEO of the Springfield Group, will continue to own and operate Springfield Home Care Services, a domiciliary care business, and Springfield Garforth Care Home in Leeds, as well as continuing to develop new Springfield Care Village projects in the region. Graeme commented: “Springfield’s care villages are the result of a simple vision, the best environments with the best care in the heart of the community. We are confident our incredible homes and teams of committed care professionals will continue to flourish as we move forward.”
In addition to providing funding, BGF played a key role in Springfield’s growth strategy. This includes facilitating key appointments, such as the company’s Non-Executive Chair, Mark Beadle, and collaborating closely with Graeme Lee and his management team to professionalise the business as it scaled.
BGF’s Mark Rigby, who sat on the Board of Springfield, said: “We are pleased to announce our exit from Springfield Healthcare Group after a highly successful investment period. Our patient capital approach has allowed us to maintain a flexible and supportive partnership with Graeme and his team, providing sustained support throughout various economic cycles and the COVID pandemic, in ways that other investment firms might not have been able to.”
Ben Barker, Head of Portfolio at BGF, added: “This exit represents one of the largest ever gains for BGF, following a 12-year partnership and a commitment to supporting the company’s aspirations. The outcome is the result of shared partnership values, thoughtful growth plans, and an exceptional management team. We wish everyone at Springfield all the best for the future.”
