Following the deal, MMCG will use the working capital to strengthen its balance sheet and support its growth plans.
Founded in 1996, MMCG is one the UK’s largest independent care providers, employing 4,500 staff and supporting 3,600 people in more than 80 homes. Earlier this year, the firm announced plans to grow its workforce by 20 per cent to meet rising demand for care provision across the UK.
Daren Harris, Chief Financial Officer at Maria Mallaband Care Group, said:
“With those aged 65+ predicted to represent 20 percent of the UK’s population by 2030[1], the demand for care continues to grow, and we’re on a mission to stay at the forefront of the sector and play a leading role in meeting this need.
“This investment from FDC will help us on this journey, not only by investing in our current sites but exploring new opportunities to improve the quality of care we can provide to our residents with the ultimate aim of supporting more people in their later life.”
Justin Sorby, Investment Director at Frontier Development Capital, said:
“The care sector is under immense pressure as demand continues to outweigh supply for these vital services. MMCG is committed to meeting this rising demand and demonstrated a clear plan for growth, so FDC was proud to get behind the team through this investment. We look forward to working with the team as they develop the MMCG portfolio and realise their growth plans.”
Squire Patton Boggs and DLA Piper acted as legal advisors for FDC and Maria Mallaband Group respectively.
FDC provides flexible long-term debt funding of up to £7.5m for growth capital, shareholder transactions and property development to businesses across the United Kingdom.
[1] ONS 2017 survey