PE Firms Swarmed to Behavioral Health in Q4:17

PE Firms Swarmed to Behavioral Health in Q4:17

Deal activity in the Behavioral Health Care sector was consistent with most of the previous quarters. Although deal volume slipped 14% from the previous quarter, it rose 20% compared with the same quarter a year earlier. The fourth quarter’s total of 12 deals represents 22% of the 54 transactions announced in the past 12 months. Private equity firms accounted for all but one acquisition in the fourth quarter, as smaller firms sold companies and larger firms purchased them as add-ons to their existing portfolios. Universal Health Services (NYSE: UHS), which operates inpatient psychiatric hospitals, was the only publicly traded acquirer in this quarter. Substance abuse treatment programs and... Read More »

2016 Home Health and Hospice Deals Picked Up

After a rough 2015, when the M&A bubble burst in this sector, deal volume in 2016 showed signs of recovery. Fifty-seven deals were announced in 2016, a 12% increase compared with the previous year. A few companies accounted for several deals. Jordan Health Services, a portfolio company of Palladium Equity Partners, led with five transactions. Epic Health Services, a portfolio company of Webster Capital, announced four deals, as did Kindred Healthcare (NYSE: KND). The latter company surprised many observers with its announcement that it was leaving the skilled nursing space to concentrate more on long-term acute care hospitals and home health and hospice agencies. We expect at least a... Read More »

Bain Capital Expands its Pediatric Home Health Platform

In less than a month, Bain Capital Private Equity has built a major pediatric home health care platform. It began on December 19,  2016, with Bain’s announcement that it was acquiring Dallas, Texas-based Epic Health Services, from Webster Capital. On January 17, 2017, the global private equity firm announced a deal for Atlanta, Georgia-based PSA Healthcare, sold by J.H. Whitney Capital Partners. Financial terms were not disclosed in either deal. J.H. Whitney acquired PSA Healthcare, then known as Pediatric Services of America, Inc., in March 2015, for an undisclosed price. PSA specialized in caring for medically fragile children at home, caring for more than 2,500 patients through 65... Read More »

Home Health Sector Closes 2016 in ‘Epic’ Deal

The year is ending on a high note for mergers and acquisitions in the Home Health & Hospice sector. Deal volume reached 54 transactions by mid-December, and could go higher as we finish up the year. Last year ended with 51 transactions. Consolidation continued, as buyers such as Kindred Healthcare (NYSE: KND) and Epic Health Services announced four acquisitions apiece. Three other companies, Almost Family (NASDAQ: AFAM), Jordan Health Services and PSA Healthcare, each made three acquisitions. Eight private equity firms made nine deals. Blue Wolf Capital Partners was the sole firm to announce two in this sector. Deal value wasn’t as impressive in 2016, but that is because some of... Read More »

Epic Health Expands Pediatric Skilled Nursing Services

The term “skilled nursing” usually brings to mind senior care facilities. Yet Epic Health Services, a portfolio company of Webster Capital, has built a strong platform of pediatric skilled nursing services since its founding in 2001.The Dallas, Texas-based company announced its fifth acquisition of 2016 in October, one that significantly expands its geographic footprint and adds a new line of services to its pediatric healthcare business. The target, Norcross, Georgia-based Pediatria Healthcare for Kids, provides pediatric home health care services to medically complex children. It operates 29 locations across eight states, offering pediatric private duty nursing and pediatric... Read More »