Home care firm with 'competitive advantage' bought by private equity firm

Home care firm Routes Healthcare, which employs 1,000 care workers and has been praised for having a “competitive advantage” for its staff development efforts, has been bought by private equity firm Palatine.

Routes Healthcare offers complex care packages for people with long-term health conditions and end of life care in the North of England and operates 14 offices in Yorkshire and the North of England.

Palatine has a portfolio spanning a variety of industries including healthcare and the environment and has highlighted that the home care firm’s focus on the professional development of its staff is a “major draw” for the private equity firm.

Investment in people 'secures a competitive advantage'

Tom Wildig, investment director at Palatine, which also has a major stake in Vernacare, a UK provider of infection control systems, said: “The business’ focus on the wellbeing and professional development of its workforce was also a major draw for us.

“The COVID-19 pandemic has highlighted both the vital role care workers play, and the lack of recognition much of their work receives. Routes’ investment in its people is not only the right thing to do, it secures a competitive advantage for the business by retaining a skilled, loyal workforce.”

Mr Wildig also said Routes’ fully integrated offering of health and social care “has become prized by its customers, as the health and social care space evolves to enable people to receive more tailored, specialist care outside of a clinical setting.”

Routes Healthcare was founded in 2005 and Mr Wildig said “demand for its services has driven sustained revenue growth over recent years and this will continue to be supported by its future service centre roll out programme”.

Praising Jackie Lindsay, who is the chief executive of Routes Healthcare, Tom Wildig said: “We have been hugely impressed with what Jackie and the team at Routes have achieved over the last two years and are excited to work with them to deliver their plan.

“The vastly experienced team, robust centralised processes, governance and infrastructure render it ideally suited to organic expansion through opening new sites as well as selected M&A.

“As NHS and local authority procurement of community and home-based services evolves, with the transition to integrated care systems, Routes’ ability to rapidly deliver flexible, scalable packages across the acuity spectrum makes it well-placed to continue on its rapid growth trajectory.”

Key Capital Partners invested in Routes in 2016, and along with the founder Andrew Healing, will retain a minority stake.

Routes Healthcare has 120 operational and management staff. The core of the home care firm's existing management team will remain with the company. Andy Lees and Tom Wildig from Palatine will join the board.

Jackie Lindsay, chief executive at Routes Healthcare, said: “Both myself and the management team are delighted to have the opportunity to work closely with Palatine to realise the next stages of our development plan.

“Palatine felt like a perfect fit for Routes from the very first meeting. We were immediately talking the same language; with our joint commitment to and understanding of the healthcare sector and passion for ESG. To find an investment partner with such naturally aligned values is fantastic.

“High-quality person-centric healthcare, enabling people to live the lives they want in the place they choose to be, is core to Routes values. This fresh partnership with Palatine will allow us to take the next steps along the route to delivering this vision.”