Duke Royalty makes £3.2m follow-on investment in Tristone
Sharecast
Published Dec 13, 2022 13:41
Updated Dec 13, 2022 14:14
Duke Royalty makes £3.2m follow-on investment in Tristone
Sharecast - The AIM-traded firm said Tristone provides specialist residential and domiciliary care in two end markets, with the first being high-acuity adults with severe mental, physical or learning disabilities.
It said the second market was care leavers, aged between 16 and 19, who are transitioning out of social care and into independent living.
Duke said its funds would facilitate Tristone's acquisition of K Bond Healthcare, trading as Next Steps, which it described as a “well-respected residential and nursing care provider” with operations across Greater Manchester.
The financing increased Duke's total investment into Tristone to £17.6m.
It said the investment terms were the same as its previous follow-on investment into Tristone, including a starting yield of 13.5% and a 6% annual revenue adjustment factor over royalty payments due.
Next Steps represented Tristone's third acquisition supported by Duke, in line with Tristone's stated buy-and-build strategy.
“It is great to be supporting Tristone's acquisition of another successful company with this follow-on funding,” said chief executive officer Neil Johnson.
“Next Steps provides the highest quality of care and maintains a culture that aligns well with Tristone's own core set of beliefs.”
Johnson said the acquisition represented an “important strategic step” in expanding Tristone's geographical presence in the north west of England, adding that there was scope to open further facilities, replicating Next Steps' “existing and highly successful” model.
“Our flexible financing model is perfect for companies such as Tristone which are executing an effective buy and build strategy and our shareholders benefit from the growth that we achieve through expanding our relationship with a trusted partner.”
At 1230 GMT, shares in Duke Royalty were down 2.13% at 35.92p.
Reporting by Josh White for Sharecast.com.
Read more on Sharecast.com
Get The App
Written By: Sharecast
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.