After a brief pause in the healthcare M&A market, WindRose Health Investors, LLC is back with a new investment. The private equity firm announced it acquired Caregiver Inc., a provider of behavioral services to adults with intellectual and developmental disabilities (IDD), for an undisclosed sum. It operates 800 properties in Texas, Tennessee, Indiana, and Ohio and employs 3,900 people.
With WindRose’s investment, Caregiver will be able to expand into new markets across the United States and increase its market share within existing markets. WindRose purchased its stake from DW Healthcare Partners and Council Capital, who will both retain an ownership stake in the business going forward.
Caregiver, Inc. had already built a substantial platform with the help of DW Healthcare Partners and Council Capital. Since December 2019, Caregiver has announced five transactions, according to DSO. In December 2019, it acquired Mosaic‘s Texas operations, which provides offers therapy services for patients and aging adults with IDD. Mosaic’s Texas branch, which operates under the brands Daybreak, Southern Concepts, St. Giles Living Centers, and Unified Care Group, generated roughly $200 million in revenue in 2019.
In early March 2020, the company announced four more acquisitions, giving it a total of 15 companies in its portfolio.
In Indiana, Caregiver acquired Houston Group Homes, which provides intermediate care for adults with IDD, helping them transition to an independent lifestyle. Houston Group Homes operates in Boone and Montgomery counties, serving approximately 40 individuals in intermediate care group homes.
Over in Ohio, Caregiver added two companies, Absolute Care and Cori Care. The former provides care to about 50 adults with IDD in the Columbus area, including in residential settings with about 130 employees, while the latter provides day rehab services to more than 100 individuals in community residential settings.
And down in Tennessee, Caregiver added Personal Care Choices, which provides in-home care, community-based day services, personal assistance, and personal care to approximately, 40 individuals in Maryville and Cleveland with about 40 employees.
For its part, WindRose Health has been a player in the behavioral health market since 2018. In November 2018, the firm purchased Traditions Behavioral Health, which provides permanent outsourced physician psychiatric services to institutional and community-based programs. A month earlier in September, the firm added Kolmac Clinic, a provider of evidence-based outpatient addiction treatment that combines psychosocial services with medication-assisted treatment (MAT) to effectively treat a patient’s substance use disorder.