Oak Hill Capital Exits AccentCare

Oak Hill Capital Exits AccentCare

May has been a busy month for deals in the Home Health & Hospice sector with eight transactions announced midway through the month. The latest is Oak Hill Capital Partners’ sale of its post-acute care platform, AccentCare, Inc. to Advent International. Financial terms were not disclosed. Today, AccentCare is the sixth largest home health platform and the third largest personal care platform in the United States. It serves health systems, physician practices and managed care organizations, and includes strategic joint ventures and partnerships. Its range of services includes personal, non-medical care to skilled nursing, rehabilitation, hospice care and care management. Oak Hill... Read More »

Medical Device Deals Stagnated in Q1:17

Deal volume in the Medical Device sector stagnated in early 2017, dropping 4% to 22 transactions in the first quarter. Deal volume was also down 29%, compared with Q1:16. This quarter accounted for 21% of the 104 deals announced in the previous 12 months. The excise tax that was introduced through the Affordable Care Act in January 2013 was suspended temporarily in December 2015. Now, medical device makers are hoping the tax will be rescinded completely with whatever bill Republicans pass to replace the ACA. The permanent repeal would brighten the outlook for startups and venture capitalists, and could lead to more innovation (and M&A) in the future. Source: HealthCareMandA.com, April... Read More »

KRG Capital Splits and Sells Vention Medical

Vention Medical Inc. has undergone some major changes this year, and it’s still the first quarter. Vention, a portfolio company of KRG Capital Partners, designs and manufactures complex medical devices and components used in interventional and minimally invasive surgical products. As of February 20th, its two core business units were sold to separate companies. Vention Medical consisted of the Advanced Technologies (Vention AT) business and a separate Device Manufacturing Services (Vention DMS) business, a contract manufacturing operation. Nordson Corporation (NASDAQ: NDSN) acquired Vention AT for $705 million in an all-cash transaction on February 20, 2017. This business develops... Read More »

Rehabilitation Attracted Private Equity and REITs in 2016

The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too. Spending in this sector is generally lower than other sectors, because so many transactions are made by local or regional buyers who want to keep deals private. Many targets are privately owned, and sellers don’t wish to disclose prices, either. In 2016, deal value was approximately $712 million, down 11% compared with 2015’s $799 million. For this sector, those figures represent healthy... Read More »

Advent International Acquires ATI Physical Therapy

Private equity continues to invest in rehabilitation companies. The latest deal, the fifth of five announced in March 2016, is from Advent International, a Boston-based firm with more than $30 billion invested in 310 companies. For an undisclosed price, the firm took a majority interest in ATI Physical Therapy, a portfolio company of KRG Capital. ATI specializes in outpatient rehabilitation and adjacent healthcare services. It operates more than 500 clinics in 19 states, and served nearly 300,000 unique patients in 2015. Read More »