Grant Avenue Carves Businesses from HCR ManorCare

Grant Avenue Capital has formed H2 Health to acquire the Heartland Rehabilitation and MileStone businesses from HCR ManorCare.

Heartland Rehabilitation is a national provider of outpatient physical rehabilitation care services including physical, occupational, and speech therapies. The business has more than 60 outpatient facilities across seven states including in Florida, Pennsylvania, New Jersey, Kentucky, and Virginia.

MileStone provides per-diem, travel, and contract clinical staffing to healthcare providers and facilities throughout the country. The business has offices in Dallas, Pittsburgh, Harrisburg, Boca Raton and Nashville.

“HCR ManorCare has created leading, regional platforms in the outpatient rehab and caregiver staffing sectors,” said Buddy Gumina, founder and managing partner of Grant Avenue. “Looking forward, we will build upon the great foundation of H2 Health to expand the reach of the business and thereby provide world-class care to a broader base of patients. In addition, completing a complex transaction like H2 Health speaks to the operational and execution capabilities of Grant Avenue Capital.” Prior to founding Grant Avenue in 2019, Mr. Gumina founded and led the build-out of Apax Partners’ US healthcare buyout practice over the course of 20 years and across multiple economic cycles.

With the closing of the transaction, Grant Avenue has named Guy Sansone, the founding partner of Kiawah River Health Partners and a Grant Avenue advisory board member, as chairman and CEO of H2 Health. “H2 Health has a long track record of delivering outstanding care and improving the lives of patients,” said Mr. Sansone. “I look forward to working with our dedicated and patient-focused management team, clinicians, and employees to grow our breadth of services over the years to come.”

Grant Avenue is a healthcare-focused, middle-market private equity firm that invests in companies with $5 million to $25 million of EBITDA. Transaction types include control buyouts, buy-and-builds, corporate carve-outs, joint-control partnership investments and special situations.

Toledo, Ohio-based HCR ManorCare, a subsidiary of ProMedica, is a provider of both short-term post-acute and long-term care through skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home health care offices. ProMedica is a non-profit health care system with locations in northwest Ohio and southeast Michigan.

© 2020 Private Equity Professional | February 7, 2020

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