Caledonia Investments completed a £49.5 million deal for a major residential care group.
The investment trust said it had taken a controlling 97.7% stake in Choice Care Group from Sovereign Capital.
The group has three arms: Choice Holdings, Truecare Holdings and Choice Pathways. It operates 47 residential care homes for adults with learning disabilities, mental health disorders and complex needs across southern England.
Caledonia which has strong historical links to north-east Scotland through the Cayzer family, some of whom remain shareholders through the Cayzer Family Trust Company said it had taken an initial 97.7% holding in the business for £49.5m.
The remaining equity has been rolled over by the management team led by Choice chief executive Edwina Johnson.
The trust said it and the banks RBS, AIB Group and Santander have provided £40m of senior debt financing were committed to providing additional capital to fund Choice’s future development.
The care provider made a pre-tax profit of £3.2m in the year to September 30 2012, and management have plans to expand the business.
Caledonia CEO Will Wyatt said: “Our investment in Choice represents another positive step in the development of Caledonia’s unquoted investment business, building upon our reputation as a measured, long-term investor in the unquoted arena.
“Choice fits well with the investment criteria we have set out to shareholders and I am confident it will deliver positive returns from the continuing growth of the business.”
Ms Johnston said the Caledonia investment would allow the company to realise its ambitions.
She said: “It is great to have the backing of Caledonia and their long-term support for our continuing investment plans.”