health care

Generation Growth Invests in Accurate Home Care

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Generation Growth Capital has made an investment in Accurate Home Care, a provider of home health care services.

Accurate Home Care (AHC) provides home health care services to patients of all ages and care requirements. Services provided include a range of Medicaid, Medicare and private pay services such as private duty nursing, personal care assistance, home health aide, and mental health, among other health services. AHC has nine regional offices serving Minnesota, Iowa and Illinois and provides more than two million service hours to its patients every year. The company is headquartered in the Minneapolis suburb of Otsego (www.accuratehomecare.com).

“When you look at taking costs out of the health care industry, home health care is a key component of that. AHC is a leading company in this industry with a strong management team that allows us to capitalize on this trend,” said Cory Nettles, a managing director of Generation Growth Capital.

Post acquisition, Amy Nelson, who founded AHC in 2002, will remain as CEO and she will retain a significant portion of the ownership. “We went through an extensive search process to find the best partner for Accurate Home Care who would help us continue to grow. We believe Generation Growth Capital will be a great fit for us. I am thrilled to be partnering with them,” she said.

Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

“We are impressed with the business that Amy and her management team have built. AHC has a best-in-class reputation in its served markets. AHC puts its clients first and leads with integrity and customer service, which gives them a competitive advantage in the market,” said John Reinke, a managing director of Generation Growth Capital.

Senior financing for this transaction was provided by Anchor Bank. Mezzanine financing was provided by Exmarq Capital Partners.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Clayton, Dubilier & Rice Acquires Healogics from Metalmark

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Clayton, Dubilier & Rice (“CD&R”) and Healogics Holding Corp. have completed the previously-announced acquisition of Healogics, a provider of advanced wound care services, from Metalmark Capital and Scale Venture Partners. The transaction is valued at approximately $910 million.

Healogics operates nearly 600 hospital outpatient Wound Care Centers, or roughly one-third of all hospital outpatient wound care centers in the US, and treated over 215,000 patients in 2013. In addition, the company operates Sechrist Industries, a global manufacturer of hyperbaric oxygen therapy chambers used in advanced wound care.  Healogics had approximately $300 million in sales in 2013. The company has more than 2,000 employees and is headquartered in Jacksonville, FL (www.healogics.com).

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $19 billion in 59 businesses representing a range of industries with an aggregate transaction value of approximately $90 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York and London (www.cdr-inc.com).

“CD&R is a proven builder of businesses and we are pleased to welcome the firm as our new partner,” said Healogics President and CEO Jeff Nelson. “We thank the Metalmark team for its help in making us a premier provider of wound care services with the scale and services required to meet the critical needs of patients suffering from debilitating and chronic wounds across the healthcare continuum.  We look forward to this next chapter in our history.”

Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. These companies span a range of industries, including energy and natural resources, industrials and healthcare. Metalmark Capital is currently investing through its latest fund that has $2.5 billion of committed capital. The firm is based in New York (www.metalmarkcapital.com).

“CD&R is a proven builder of businesses and we are pleased to welcome the firm as our new partner,” said Mr. Nelson. “We thank the Metalmark team for its help in making us a premier provider of wound care services with the scale and services required to meet the critical needs of patients suffering from debilitating and chronic wounds across the healthcare continuum.  We look forward to this next chapter in our history.”

2014 PEPD • Private Equity’s Leading News Magazine • 7-2-14

Triton Pacific Capital Partners Sells Alegis Care to Cigna

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Triton Pacific Capital Partners has sold its portfolio company Alegis Care to Cigna.  During Triton Pacific’s ownership period, Alegis Care increased in value by more than 2.6 times.

Alegis Care (previously known as Home Physicians) is a Chicago-based Chronic Care Management, Health Risk Assessment and Medicare Fee for Service organization that was acquired by Triton Pacific in March of 2006. Focused on providing comfortable in-home care for chronically ill and elderly patients, Alegis Care’s services are particularly timely with respect to the Affordable Care Act (www.alegiscare.com).

“We are pleased to have Cigna recognize the value created in Alegis Care. We achieved our strategic positioning of the company to capitalize on the Affordable Care Act’s stated goal of combining cost containment with quality of care,” said Craig Faggen, CEO of Triton Pacific. “Cigna is in an excellent position to build and guide Alegis Care through the next phase of growth.”

Triton Pacific Capital Partners acquires controlling interests in profitable entrepreneurial companies.  The firm seeks to partner with management of established, profitable companies that have compelling, differentiated business propositions.  Triton Pacific currently maintains a controlling investment in 16 private equity companies with an enterprise value in excess of $170 million.  The firm was founded in 2001 and is headquartered in Los Angeles, CA, (www.tritonpacific.com).

Raymond James Financial served as exclusive financial advisor to Alegis Care.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-4-13

Post Capital Partners Acquires Invo HealthCare

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Post Capital Partners has recapitalized Invo HealthCare Associates, a provider of outsourced clinical services for special needs children.  In making the investment, Post Capital is partnering with Invo HealthCare’s Co-Founder, CEO and President, Mary McClain, and Jason Ralph, COO. 

“After a long search, we chose Post Capital as our partner for two reasons.  First, for their commitment to making investments in our staff and infrastructure so that Invo can continue to provide best-in-class services to our ultimate clients – our children.  Second, for their demonstrated ability to work with management teams like ours to develop and implement appropriate growth strategies,” said Ms McClain. 

Invo HealthCare is a provider of outsourced clinical services for special needs children in 23 states. It operates through two divisions that serve the needs of preschool children (3-5) and school age children (K-12).  In addition, Invo’s early intervention division provides service delivery to children from birth to 3 years.  Founded in 1993 by Patrick McClain, an occupational therapist and Mary McClain, an educator, Invo HealthCare now operates in 23 states. The company is based in Jamison, PA (www.invohealthcare.com). 

“For 20 years, Invo HealthCare has successfully addressed the acute shortage of qualified therapists – particularly speech-language pathologists, occupational therapists, physical therapists, special instructors and school psychologists.  With its superior recruiting and staffing capabilities, Invo meets the needs of school districts and municipal agencies to reduce cost and to improve flexibility while providing parents with access to high quality services for their special needs children,” said Post Capital Managing Director Mitch Davidson. 

Post Capital was introduced to the investment opportunity by investment bank Capstone Partners (www.capstonellc.com), which advised Invo throughout the transaction.  Susquehanna Bank provided the senior debt financing. 

Post Capital invests from $5 million to $15 million of equity in companies with $10 million to $150 million of revenue and a minimum EBITDA of $2 million.  Industries of interest include business services; financial/insurance services; consumer products and services; healthcare services; media and publishing; niche manufacturing and industrial; and transportation and logistics.  The firm is making investments out of its second investment fund. Post Capital is based in New York (www.postcp.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

NewSpring Capital Invests in Aisthesis

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NewSpring Capital announced today that NewSpring Mezzanine, the dedicated mezzanine fund of NewSpring Capital has completed a mezzanine investment in Aisthesis, an anesthesia practice and management company and a portfolio company of Triton Pacific Capital Partners.

Aisthesis provides anesthesia services to ambulatory surgery centers, office-based surgery facilities, and hospitals. The company was founded in 1999 and is based in Bethesda, MD (www. aisthesispartners.com).

“We look forward to working with the management teams at Aisthesis and Triton Pacific to help them continue to grow the business. We are excited about this investment as it is geographically located right in the middle of our target market and in a space that NewSpring has some deep institutional knowledge and experience,” said Greg Barger, Partner of NewSpring Mezzanine.

NewSpring Capital is a provider of private equity capital focused in the Mid-Atlantic region. NewSpring Capital currently has $600 million of capital under management through a family of funds including: NewSpring Ventures which provides equity capital to growth and expansion stage companies with a focus on business services, enabling technologies, and information technology; NewSpring Health Capital which provides equity capital to healthcare companies within the life sciences, healthcare services, and medical device sectors; and NewSpring Mezzanine Capital which provides mezzanine capital for expansion stage and buy out opportunities in the business services, health care, information technology, and specialty manufacturing sectors. The firm has offices in Radnor, PA; Short Hills, NJ; and Washington, DC (www.newspringcapital.com).

Triton Pacific Capital Partners acquires controlling interests in profitable entrepreneurial companies. The firm seeks to partner with management of established, profitable companies that have compelling, differentiated business propositions. Triton Pacific currently maintains a controlling investment in 16 private equity companies with an enterprise value in excess of $170 million. The firm was founded in 2001 and is headquartered in Los Angeles, CA, (www.tritonpacific.com).

Water Street Healthcare Partners Exits OraPharma

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Valeant Pharmaceuticals International announced today that it has agreed to acquire OraPharma, a specialty oral health company and a portfolio company of Water Street Healthcare Partners. Total consideration is approximately $312 million and up to $114 million in potential contingent payments based on certain milestones, including revenue targets. As of March 31st, 2012 OraPharma’s trailing twelve month net revenue was approximately $95 million with the business growing at a high single digit rate.

OraPharma is a specialty oral health company that develops and commercializes products that improve and maintain oral health. OraPharma’s lead product is Arestin, a locally administered antibiotic for the treatment of periodontitis that utilizes a controlled-release delivery system and is indicated for use in conjunction with scaling and root planing for the treatment of adult periodontitis. The company is based in Horsham, PA (www.orapharma.com).

Water Street Healthcare Partners is a Chicago-based private equity firm focused exclusively on healthcare. The firm has more than $1 billion of capital under management. The firm has particular expertise in corporate divestitures from healthcare companies (www.waterstreet.com).

Valeant Pharmaceuticals International is a multinational specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. The company is based in Montreal (www.valeant.com).

Primus Capital Invests in AOD Software

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AOD Software, a provider of software and technology to the long term care industry, has received a growth investment led by Primus Capital Funds. “AOD is an extremely well run business that has been growing rapidly over the past several years, and the company fits our strategy perfectly of investing in high‐growth, market leading technology businesses. We are very excited to partner with AOD to help them achieve their long term goals,” said Scott Seelbach, Director at Primus.

AOD provides a suite of clinical, financial, operational, home health, rehabilitation, and point of sale software solutions to various healthcare providers, including continuing care retirement communities, skilled nursing, assisted living and independent living operators. The company was founded in 1995 and is based in Ft. Lauderdale, FL (www.aodsoftware.com).

“The demographic trends of an aging population, combined with growing financial constraints throughout the healthcare system, place incredible pressure on long term care operators to deliver high quality care in a cost effective and efficient manner. AOD is uniquely positioned to help providers meet these demands by virtue of its market leading customer base and fully integrated suite of clinical, financial, and operational software applications,” said Phil Molner, Managing Director at Primus.

Primus invests in high-growth companies within the healthcare, software and technology‐enabled services, and education industries. Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm is located in Cleveland, OH (www.primuscapital.com).