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Back to blog November 30, 2018 No Comments Author: Andy Jones

Private Equity Investing in Nursing Homes & Home Health Care

Private equity ownership in nursing homes, elderly care and home health care has been in the news lately. This prompted me to probe our private equity database to explore PE ownership in the elderly care industry.

There are 101 current private equity platform portfolio companies in the elderly care sector. About a third of these were acquired in the last 3 years.

Year            # Platform Companies
2018YTD      9
2017            11
2016            12

Many of these platform companies have grown through add-on acquisitions (as seen in the examples below). Consequently, the actual number of elderly care related PE acquisitions is larger than 101.

 

Most Active Private Equity Investors in Home Healthcare

The most active private equity investor in home health is Capitol Partners, with 11 investments. SV Health Investors and Boyne Capital both have 3 investments each.

Below are a few sample transactions from 2018 and 2017.

 

2018 (YTD) – Private Equity Firms Acquired 9 Elderly Care Platform Companies

Kindred at Home (Louisville, KY) – Welsh, Carson, Anderson & Stowe | TPG

Kindred at Home is a Home health, hospice, and personal care operator.

July 2018 – Humana Inc. (NYSE: HUM), TPG Capital and Welsh, Carson, Anderson & Stowe acquired Kindred Healthcare, Inc. for approximately $4.1 billion in cash including the assumption or repayment of net debt. Kindred’s long-term acute care (LTAC) hospitals, inpatient rehabilitation facilities (IRF) and contract rehabilitation services business (collectively, Kindred Healthcare) were separated from Kindred’s home health, hospice, and community care businesses (collectively, Kindred at Home). Kindred Healthcare will be operated as a separate specialty hospital company owned by TPG and WCAS. Kindred at Home will be operated as a standalone company owned 40 percent by Humana, with the remaining 60 percent owned by TPG and WCAS. Kindred’s stock ceased trading on the New York Stock Exchange.

 

Abode Healthcare (Durango, CO) – Tailwind Capital

Abode Healthcare is a provider of hospice and home health services.

May 2018 – Tailwind Capital (Fund III) acquired Abode Healthcare from private equity firm Frazier Healthcare Partners.

 

2017 – Private Equity Firms Acquired 11 Elderly Care Companies

Bristol Hospice (Salt Lake City, UT) – Webster Capital

Bristol Hospice is a provider of Hospice and palliative care services.

  • 2006 – Bristol Hospice was founded.
  • November 2017 – Webster Capital acquired Bristol Hospice.
  • July 2018 – Bristol Hospice acquired Optimal Health Services.
  • August 2018 – Bristol Hospice acquired the Colorado operations of Suncrest Hospice LLC.
  • November 2018 – Bristol Hospice acquired the Utah operations of Brighton Home Health & Hospice.

 

ComForCare (Bloomfield Hills, MI) – The Riverside Company

ComForCare Home Care is a provider of private duty, non-medical home health care.

  • July 2017 – The Riverside Company invested in ComForCare Health Care Holdings, LLC, the franchisor of ComForCare Home Care and At Your Side Home Care home care agencies.
  • February 2018 – The Riverside Company added CarePatrol to its ComForCare platform.

 

Care Advantage (Richmond, VA) – BelHealth Investment Partners

Care Advantage is a provider of home healthCare and related services in Virginia.

  • 1988 – Care Advantage was founded.
  • January 2017 – BelHealth Investment Partners, LLC acquired Care Advantage, Inc.
  • May 2017 – Care Advantage, a BelHealth Investment Partners portfolio company, acquired Stay at Home Personal Care, a subsidiary of Commonwealth Senior Living.
  • December 2017 – Care Advantage acquired Care Solutions of Tidewater, LLC.
  • January 2018 – Care Advantage acquired Ready Hands, Inc.
  • August 2018 – Care Advantage, Inc. acquired Paradise Homecare, A Hopeful Home, and the complete buyout of the Care Advantage Plus joint venture. Additionally, Care Advantage completed the buyout of the Jefferson Area Board For Aging’s 50% stake in Care Advantage Plus.
  • September 2018 – Care Advantage acquired Direct Home Health Care.

 

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