Healthcare provider expands into Northeast with £7m acquisition backed by Barclays
West Midlands-based Pegasus Care has entered the Northeast with a £7m acquisition of the Parkside Care portfolio, in a deal supported by Barclays.
The portfolio comprises three operational care homes with 97 registered beds: Northlands Nursing Home in Morpeth, Holmlea care home in South Shields and The Chesters in Gateshead.
The transaction also includes two additional care-related assets.
The acquisition is Pegasus’s first expansion beyond the West Midlands and gives the group an established base for further growth in the Northeast.
Pegasus provides residential, dementia and nursing care, alongside supported living services, for adults with a range of complex needs. Following completion, the group will operate approximately 200 registered beds across the West Midlands and Northeast.
The deal builds on Barclays’ strong relationship with Pegasus, including its support for the group’s refinancing in 2024.
That established relationship enabled Barclays to structure funding for the acquisition and Pegasus’s expansion into a new region.
Mark Busra, founder and chief executive officer of Pegasus Care, said: “Pegasus Care has grown steadily and predominantly organically, with a couple of acquisitions along the way.
“Acquiring Parkside marks a significant next step, taking us beyond the Midlands and establishing a strong base in the North East through three established homes and 97 beds. Our purpose remains the same: changing lives through empowerment and enablement.
“Barclays has known us and supported our journey for a number of years. They understand what we have built, how we operate and where we want to go. Having that longstanding relationship and backing puts us in a strong position for the next stage of our growth.
“This is an exciting first step in a much longer journey. Our immediate focus is on supporting the Parkside teams, preserving what they already do well and giving them the investment and wider infrastructure to build from an already strong position.”
Simon Freeman, relationship director at Barclays, said: “Pegasus has built a successful care business in the West Midlands, and this acquisition gives the team an established operation from which to expand into the Northeast.
Our close relationship meant we understood the management team’s plans and could put in place funding that supported both the transaction and the business’s wider growth ambitions.”
The funding reflects Barclays’ wider Backing Britain’s Future commitment to help businesses across the UK invest and grow. The programme includes a £22bn Business Prosperity Fund and an ambition to support 1.5 million businesses and entrepreneurs by 2030 through finance, expertise and access to networks.