The Home Health & Hospice sector had a jolt of activity last week. One Equity Partners is selling its portfolio company, Simplura Health Group, to The Providence Service Corporation (NASDAQ: PRSC) for $575 million.
The Providence Service Corporation, through its wholly-owned subsidiary LogistiCare Solutions, LLC, is the nation’s largest manager of non-emergency medical transportation programs for state governments and managed care organizations. Providence Service Corporation is acquiring a 100% interest in Simplura.
Simplura Health Group operates a large network of home health and personal care agencies across Connecticut, Florida, Massachusetts, New Jersey, New York, Pennsylvania and West Virginia. Simplura employs approximately 14,000 caregivers that provide more than 20 million hours of non-medical personal care annually to primarily Medicaid patient populations, including seniors and disabled adults. The company generated 12-month revenues of $463.1 million and adjusted EBITDA of $49.6 million.
The home health provider has grown significantly under One Equity Partners, according to search results from HealthCareMandA.com Deal Database. In 2019, the duo added Personal In-Home Services in Wheeling, West Virginia. Founded in 1991, Personal In-Home Services provides a wide range of personal assistance to the elderly in West Virginia. Its operating subsidiaries, Panhandle Support Services and Select Home Support, provide help with managing activities of daily living, such as bathing, dressing, eating, grooming and mobility.
In 2018, Simplura Health Group added three providers to its network: Keystone In-Home Care (Lancaster, Pennsylvania), SarahCare of Jenkintown (Jenkintown, Pennsylvania) and Helping Hand Home Health & Hospice Agency (Philadelphia, Pennsylvania).
Simplura gives The Providence Service Corporation a complementary higher-margin business in non-medical personal care. The deal is expected to be immediately accretive to adjusted EPS before synergies.
