North East Healthcare Group Advances Growth Strategy with Double Acquisition Backed by NPIF II – NEL Debt Finance
A North East healthcare and mobility investment group has expanded its footprint across Scotland following the acquisition of two award-winning businesses, supported by a six-figure investment from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).
Advanced Healthcare Group, based in Newcastle, has acquired Able Care and City Mobility, two well-established mobility equipment providers with more than 150 years of combined heritage serving communities across Scotland.
The acquisition follows Advanced Healthcare's purchase of Dundee-based Allardyce Healthcare last year and further strengthens the group's position in the Scottish market. It also supports the company's long-term ambition to improve lives and promote independence through innovative healthcare and mobility solutions.
Able Care and City Mobility will continue to operate under their existing brands, with their current management teams and employees remaining in place. Customers will continue to receive the same high-quality service and access to a wide range of products and equipment, while benefiting from increased investment and growth opportunities through Advanced Healthcare's scalable platform.
By bringing the businesses into the group, Advanced Healthcare aims to drive operational efficiencies, support future expansion and deliver essential products and services to a growing customer base across the UK.
Advanced Healthcare is led by Gary Lynch, alongside healthcare investors James Oates and Ross Tomkins, and David Lynch, who co-founded NEL-backed Lynch Healthcare in 2009, growing the business into a significant player in the mobility supply, manufacturing and maintenance sector before its successful private equity exit in 2020.
James Oates said: " These acquisitions represent another important milestone in our strategy to build a leading healthcare and mobility group with the scale, expertise and resources to serve customers across the UK and beyond.
"Able Care and City Mobility have built exceptional reputations over many decades, and we're committed to supporting their continued success while preserving the values and customer relationships that have made them so highly regarded.
“It was a pleasure to work with James, Michael and the wider NEL team on this transaction. The process was seamless from start to finish and the support throughout was exceptional. I would highly recommend NEL as an investment partner."
David Lynch added: "Adding Able Care and City Mobility to the Advanced Healthcare Group allows us to honour the fantastic legacy of both businesses while helping them continue to evolve and grow across Scotland.
“I've worked with NEL on a number of investments over the years, so I knew they would be the right partner for this transaction.”
The investment was led by Michael Williams, Investment Executive at NEL Fund Managers.
Michael said: "The Advanced Healthcare team combines significant sector expertise with a clear strategy for growth. They understand how to build successful businesses while preserving the heritage, reputation and customer relationships that have made companies such as Able Care and City Mobility successful.
"We're delighted to have supported these acquisitions and look forward to seeing the business continue its ambitious growth journey."
Sarah Newbould, Senior Investment Manager at the British Business Bank, said: “The Northern Powerhouse Investment Fund II is helping Advanced Healthcare Group take an important step forward in its growth journey. Through investments like this, we’re supporting ambitious businesses to grow, strengthening regional economies and helping to create new opportunities across the North.”
The investment opportunity was referred to NEL by Abu Ali of FRP Advisory and the legal side of the transaction was supported by Sophie Bailey of Shepherd & Wedderburn acting for Advanced Healthcare Group, Thomas Pullar of CMS acting for NEL, and Thomas McGahie of BBM Solicitors acting for the sellers.
Operated by the British Business Bank, the £660m Northern Powerhouse Investment Fund II covers the entire North of England and provides loans from £25,000 to £2m, alongside equity investments of up to £5m, to help smaller businesses start up, scale up and stay ahead.
The fund aims to drive sustainable economic growth by supporting innovation, creating local opportunity and increasing the supply and diversity of finance available to smaller businesses across the region. It helps address barriers to accessing finance and supports businesses that may otherwise struggle to secure investment.
NEL Fund Managers also manages NPIF II – NEL Smaller Loans, which provides investments of between £25,000 and £100,000 to support the growth ambitions of emerging and established businesses.
For more information about NEL Fund Managers, visit NEL Fund Managers or contact the investment team on 0345 369 7007.