31 January 2022

Silverfleet Capital sells Care Fertility

The pan-European private equity firm Silverfleet Capital has agreed to sell its stake in Care Fertility, a leading chain of fertility clinics in the United Kingdom, to Nordic Capital, generating a 2.6x gross money multiple and an IRR of over 40%. Completion of the transaction is expected to occur in February 2022 and is not subject to further closing conditions.

Headquartered in Nottingham, England, Care Fertility operates through a network of 24 clinics across the United Kingdom and Ireland. It employs over 160 embryologists and doctors and has helped in the delivery of over 51,000 babies since it was founded in 1997. The business is at the forefront of innovation in fertility treatment globally and has grown its clinic numbers through both organic rollout and acquisition since its inception.

Silverfleet acquired a majority stake in Care Fertility in 2019, having identified the positive market dynamics of a rising need for fertility treatment in the developed world and the opportunity to help the business scale to become the clear market leader in the UK; develop its digital technology; and lay the foundations for international expansion.

During Silverfleet’s ownership, Care Fertility opened a new clinic in Liverpool and acquired four further clinics in the UK in Woking, Chester, Tamworth and Leeds. In addition, Silverfleet supported Care Fertility in the acquisition of a specialist software business, Salve, which focuses on improving the patient journey and interaction with clinics. This acquisition forms part of a much larger digitisation project Care Fertility has been pursuing since Silverfleet’s investment.

Under Silverfleet’s ownership, Care Fertility has significantly increased revenue and EBITDA, despite the global pandemic, further demonstrating the resilience and quality of the business.

Gareth Whiley, Managing Partner of Silverfleet Capital says: “Care Fertility is a truly high-quality business, and we are delighted to have helped the company achieve what it has under our ownership. We have again demonstrated our skills at executing a high-growth plan through both organic expansion and strategic acquisitions; and our ability to help our portfolio companies undergo significant digital transformation. Our thanks go to the Care management team who have continued to build the clinical excellence of the business and its brand reputation while also completing a significant number of operational improvements and growth in the clinic estate. We wish the team every success in the coming years.”

David Burford, Chief Executive of Care Fertility says: “It has been a pleasure to work with the Silverfleet team over this exciting period and to have their help to create the UK’s leading fertility company and invest in the digital future of how we interact with our patients. We now look forward to a bright future with Nordic Capital as we embark on the next stage of our growth, particularly internationally.”

Silverfleet was advised by Rothschild & Co, Travers Smith, PwC and LEK. The Care management team were advised by Browne Jacobson and Deloitte.

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