SkinCity deal helps growth of lifestyle empire

SkinCity, a holding company owned by Ian Richardson and Dr Magdy Ishak, paid a seven-figure sum for Leeds Ultrasound Screening Service and Genome Limited, which jointly run the Leeds Screening Centre.

A spokeswoman for SkinCity said the deal forms part of a growth strategy to build a personal products lifestyle group.

It is the third acquisition for SkinCity, which bought Aromatherapy Associates in 2009 and Lifestyle Aesthetics in 2008.

Mr Richardson, a former corporate finance lawyer at Eversheds in Leeds, said he is looking at more acquisitions and is in discussions with two businesses in the skincare and lifestyle areas.

He and his business partner are investing their own money in building up the new group. It is the second time Mr Richardson and Dr Magdy have set out on an acquisition trail.

They went into business together in 2002 to form Covenant Healthcare, which they built up before selling in 2005 for 170m, netting around 20m each.

Their latest deal has been engineered to allow the founders of the two businesses to retain a substantial stake in the new company, which is called Genome Screening Limited.

Gerald Mason, a consultant in feto-maternal medicine at Leeds General Infirmary, is the founder of Leeds Ultrasound Screening Service and is an expert in his field.

He is an executive member of the British Maternal and Fetal Medicine Society and the director of a Leeds training programme in feto-maternal medicine.

Professor Howard Cuckle, a recognised world leader in screening research, is the founder of Genome Limited.

He is professor of obstetrics and gynaecology at Columbia University in New York and also emeritus professor at the school of medicine at the University of Leeds.

They realised "significant sums" in the deal and will be able to "access further investment, expert support and experience from the incoming investors", said the SkinCity spokeswoman.

Mr Richardson said the new company plans to broaden its offering and then roll out a similar model in Manchester and Glasgow.

Turnover for the new business will be around 1m.

Mr Richardson, group chief executive, added: "I am delighted to be working with Gerald and Howard.

"Their work at the Leeds Screening Centre has placed it at the forefront of scanning and screening services, offering what we believe to be an unparalleled range of services and tests for not only genetic conditions such as Down's Syndrome, but also pre-eclampsia.

"Genetic screening in conjunction with ultrasound scanning has the potential to enable expectant parents to know more about their baby before birth than ever before.

"We share the same vision of providing these services to parents from a network of centres nationwide.

"This is the latest addition to SkinCity and its overall plan to create a group covering all aspects of individuals' health and wellbeing."

Dr Magdy Ishak, executive chairman of SkinCity, said: "The growth in scanning and screening is not simply limited to unborn children, but will be used more frequently to enable people to review their own risk of suffering from diseases and conditions.

"Gerald and Howard are two pre-eminent pioneers in these fields and we believe we can expand the existing offering to provide a range of scanning and screening services of benefit to every individual.

"Healthcare is moving inexorably towards a preventative approach, and the Leeds Screening Centre will be at the forefront of that development."

Leeds-based lawyers at The Needle Partnership provided legal advice while Hardy Transaction Management provided corporate finance advice.

From law to healthcare

Yorkshire-born Ian Richardson spent most of the Nineties heading up corporate finance for Eversheds law firm in Leeds.

During that time he saw the city transform itself into a dynamic commercial centre.

But by the early part of the following decade he decided to go into business himself and teamed up with a client, Dr Magdy Ishak, who had become a friend.

Together they formed Covenant Healthcare Group and with financial backing from Bank of Scotland and Phoenix Equity Partners bought Abbey Hospitals for 25m.

Their next big deal was to pay 20m for the Transform Medical Group, the cosmetic surgery business owned by John Ryan, the owner and chairman of Doncaster Rovers.

Covenant later built some and acquired some psychiatric hospitals. Three years later, the group was sold in a deal worth 170m.

Mr Richardson and Dr Ishak earned more than 20m from the sale.