Private equity firm GI Partners has announced the £28 mln (EUR 32 mln) acquisition of Advanced Childcare (ACL), a provider of outsourced children's care and education services in the UK, from Bowmark Capital, the mid-market private equity fund.

Based in Stockport, Greater Manchester, and employing over 350 people, ACL currently operates 30 residential care homes and a fostering service and has been awarded six regional contracts from local authorities in Manchester, Oldham, Birmingham, Wolverhampton, Bradford and Blackpool.

ACL is the latest addition to GI's growing portfolio of specialist care and education companies. GI intends to use ACL as a platform to create a multi-regional, industry-leading childcare services business. The company already owns The Cambian Group, the UK's largest provider of specialist services in education, mental health rehabilitation and learning disabilities. GI said it has 'similar growth aspirations for ACL and expects to invest additional capital through the platform'.

The transaction was funded by capital from GI Partners Fund III L.P. and was supported by a conservative amount of debt financing provided by Yorkshire Bank, the sister bank of Clydesdale Bank, through a combination of term facilities and funding for future capital expenditures.

'Advanced Childcare has pioneered the trend of managing children's care services on behalf of budget constrained local authorities with residential childcare being one of the few services that the government acknowledges is less expensive if provided by the private sector,' said Alfred Foglio, managing director of GI Partners. 'More often than not, local government authorities are choosing to close down older or inadequately-rated facilities and use a competitive tendering process to select proven providers who are willing to invest in new buildings and high-quality care models.'