HgCapital Trust plc Regulatory News (HGT)

5 Apr 2006 07:00

HG Capital Trust PLC05 April 2006 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. The Trust, which is a listed investment trust givinginvestors the opportunity to participate in all of HgCapital's investments, willinvest approximately £12.2 million in Paragon Healthcare Group. HgCapital extends presence in specialist healthcare sector with the acquisitionof Paragon Healthcare Group for £322 million London, 5 April 2006. HgCapital, the European sector-focussed private equityinvestor, has acquired Paragon Healthcare Group ("Paragon") from Duke StreetCapital in a £322 million buy-out. Paragon is a leading provider of speciality community-based residential care forpeople with learning disabilities. Paragon operates more than 250 homes with1600 places throughout the UK. Its homes provide a normal and positive lifestylefor residents in a comfortable domestic living environment and present an idealplatform from which people can further develop and improve their adult lives.This community-based care is now the recognised standard for those with learningdisabilities and other complex needs. HgCapital has significant experience and expertise in the specialist caresector. In 2002, it acquired Castlebeck Care ("Castlebeck"), the UK's largestindependent provider of specialist healthcare and rehabilitation services forpatients with learning disabilities and severely challenging behaviours. Underthe ownership of HgCapital and management, Castlebeck has increased its capacityby more than 60% and has developed new specialist services both for young peopleand for those with autism. It has also extended its geographic reach across theUK. HgCapital will work with the existing Paragon management, who have invested inthe business, to grow Paragon. They see opportunities to continue to developservices in areas where there is a lack of good quality provision. Lindsay Dibden, Partner of HgCapital and Head of the Healthcare team commented:"Paragon is an excellent business which provides the best possible services to avulnerable section of the community. We are pleased to be backing a strongmanagement team, all of whom remain fully committed to the business. HgCapitalalready has a deep understanding of the specialist care sector which has stronglong term growth prospects." Douglas Quinn, Chief Executive of Paragon said:"Our commitment to the people we support is our absolute priority. There remainsa significant demand for the specialist care services we provide, which are nowrecognised as the most effective way of helping the development of people withlearning disabilities. HgCapital has a real understanding and commitment to thesector. They will support the continued growth of our business and improvementsof the care and services we provide. We are delighted with this newpartnership." HgCapital was advised by Merrill Lynch (corporate finance), Linklaters (legal),Deloitte (financial), PricewaterhouseCoopers (commercial), Willis (insurance),Christie & Co (property valuation), and Pinder Professional and ConsultancyServices (property). Contacts HgCapital Lindsay Dibden +44 (0)20 7089 7980Jill Ridley-Smith +44 (0)20 7089 7981 Maitland Suzanne Bartch +44 (0)20 7379 5151Peter Ogden This information is provided by RNS The company news service from the London Stock Exchange