Elm Creek Partners has acquired The Care Group of Texas, a provider of in-home health services. Bowside Capital, 747 Capital, and industry executive Roy Spradlin invested in The Care Group alongside Elm Creek.
The Care Group of Texas (CGT) is one of the largest providers of in-home, pediatric respiratory therapy and enteral feeding services and supplies in the greater Houston, Texas market. The company was founded in 1987 and is headquartered in Houston (www.caregrp.com).
Upon closing of the acquisition, Elm Creek appointed Mr. Spradlin as the company’s new chief executive officer. Mr. Spradlin is the former CEO of Senior PsychCare and US Physical Therapy. He has over thirty years of healthcare industry experience and an extensive track record of successfully growing and developing various healthcare related businesses.
Elm Creek Partners and The Care Group are looking to grow CGT through geographic expansion and additional services and Elm Creek has additional committed equity capital available to support these future initiatives.
Elm Creek Partners invests from $3 million to $6 million in companies with $5 million to $50 million in revenues and cash flow of at least $1 million. Sectors of interest include niche manufacturing, aerospace & defense, industrial services, healthcare services, and non-bank transaction processing. The firm has no geographic limitations but prefers to invest in companies based in Texas and the surrounding states. Elm Creek Partners was founded in 2007 by Aaron Handler and Zach Wooldridge and is headquartered in Dallas (www.elmcreekpartners.com).
Bowside Capital invests in US and Canadian private equity funds with less than $150 million in committed capital, makes secondary purchases of limited partner interests in funds that meet its target criteria, and co-invests with these small funds and independent sponsors in direct transactions. The firm was founded in 2009 and is headquartered in Charleston, SC (www.bowsidecapital.com).
747 Capital, through co-mingled funds and managed accounts, focuses exclusively on the small-cap private equity market in the US and Canada. The firm invests in new private equity funds as well as select secondary opportunities and also makes direct investments. Typical direct investment targets are US or Canadian based companies that have enterprise values under $100 million and cash flow under $10 million. The firm is based in New York (www.747capital.com).
Tangent Capital Partners (www.tangentcapital.com), a New York-based investment bank, was the exclusive advisor to the sellers on the transaction.
© 2014 PEPD • Private Equity’s Leading News Magazine • 12-3-14