Home Health & Hospice Sector Deals Dipped in Q3:19

Home Health & Hospice Sector Deals Dipped in Q3:19

Deal volume in the home health and hospice sector dipped slightly in the third quarter of 2019, down 23% with 20 publicly announced transactions, compared with 26 acquisitions in the second quarter, according to data from HealthCareMandA.com. Compared with the third quarter of 2018, home health and hospice M&A activity decreased by 20%, when 25 acquisitions were announced. Six of the transactions disclosed prices in the third quarter of 2019, for a combined total of nearly $1.2 billion. In the same quarter of 2018, the total dollar value based on disclosed prices was just $7.2 million. Of the 20 transactions announced in the third quarter, 35% were announced by private equity firms or... Read More »
TowerBrook & Ascension Acquire Hospice Compassus in $1 Billion Deal

TowerBrook & Ascension Acquire Hospice Compassus in $1 Billion Deal

TowerBrook Capital Partners and Ascension have joined forces in a hospice deal worth $1 billion, or 11.8x revenue. The joint venture is buying Hospice Compassus, which provides hospice, palliative and home health care and services to patients in more than 25 states, from Formation Capital and Audax Private Equity. Towerbrook and Ascension will own equal stakes in Hospice Compassus after buying the hospice firm an auction that started in early 2019. Formation and Audax backed Hospice Compassus for roughly five years, recapitalizing the company in 2014 for roughly $300 million, according to the same report. Although it’s no surprise that PE firms are big players in the Home Health and... Read More »
Numotion Moves to AEA Investors

Numotion Moves to AEA Investors

Audax Private Equity and LLR Partners have exited their jointly held rehab company, Numotion, which has been a major player in consolidating the complex rehabilitation technology (CRT) market. AEA Investors is the new owner. The target provides complex rehabilitation technology (CRT), including manual and power wheelchairs designed to meet the unique medical and functional needs of individuals with significant disabilities and medical conditions. Numotion was formed in January 2013 through the merger of United Seating Mobility and ATG Rehab. Audax Private Equity acquired ATG Rehab in January 2011, and LLR Partners acquired United Seating and Mobility in February 2011. Since then, the... Read More »
Meridian Behavioral Health Takes Minnesota

Meridian Behavioral Health Takes Minnesota

Minneapolis-based Meridian Behavioral Health, a portfolio company of Audax Private Equity, is now the largest provider of behavioral health care services in Minnesota. Meridian provides care to individuals suffering from substance use disorders with co-occuring mental illness. On October 25, it announced the acquisition of New Beginnings Minnesota, which provides inpatient and outpatient substance abuse care. Financial terms were not disclosed. New Beginnings’ residential campuses are supported by six outpatient clinics located in Minnetonka, Elk River, Litchfield, Olivia, St. Peter, and Worthington, Minnesota. The transaction makes Meridian the largest provider of behavioral health... Read More »

ResCare Switches to ‘Home Health Lite’

ResCare Inc., a portfolio company of Onex Corp. (TSE: ONEX), is changing the direction of its home health segment. ResCare, the nation’s largest private provider of services to people with disabilities, has been divesting its home health assets since 2014. A recent 10-K filing by Onex Corp. stated that ResCare was exiting the skilled line of business in the home care segment and transitioning to home health services without the skilled nursing. The exit resulted in a 2% decrease in revenue between 2015 and 2016, which was substantially offset by acquisitions within the home care and residential services segments, according to the filing. On April 10, 2017, Active Day/Senior Care... Read More »