Duke Capital makes follow-on investment in Tristone Healthcare

(Sharecast News) - Duke Capital announced a £2.5m follow-on investment in Tristone Healthcare on Monday, comprising £2m in credit financing and £0.5m in equity, to support Tristone's acquisition of Serenity Care Homes. The AIM-traded firm said the deal brought its total credit financing in Tristone to £21.2m, and marked its fifth investment to back the group's acquisitive growth strategy in the specialist social care sector.

It said the new funds would enable Tristone to expand its footprint further through the purchase of Serenity, a provider of therapeutic care for children and adolescents aged seven to 18.

The financing terms mirrored Duke's original investment, including a 13.5% starting yield and a variable annual revenue-linked adjustment of plus or minus 6% on hybrid credit payments.

Duke said the additional equity investment increased its ownership in Tristone from 21.3% to 28.4%.

It said Tristone delivers specialist care services for high acuity adults with complex needs as well as children and young people requiring education and residential support.

Following the latest acquisition, the group would employ more than 800 staff across its operations.

"The acquisition of Serenity Care Homes will enable Tristone to cater for a growing number of young adults with complex needs, expanding its presence in the South of England," said chief executive officer Neil Johnson.

"Serenity's established relationships with local authorities, who make up the majority of referrals, will deepen Tristone's regional partnerships and reinforce its reputation for delivering high-quality care.

"Duke is also excited to invest additional equity into Tristone, increasing our stake in the business and supporting the ongoing growth of the platform."

At 1142 BST, shares in Duke Capital were down 0.34% at 29.5p.

Reporting by Josh White for Sharecast.com.