health services

Blue Wolf Capital Partners has acquired RHA Health Services from Formation Capital and Safanad.

RHA is a provider of health services to individuals with intellectual and developmental disabilities, behavioral health needs, and substance use challenges. The company serves more than 25,000 people each year from its more than 440 locations in Georgia, Florida, North Carolina, and Tennessee. The company was founded in 1989 and is headquartered in Ashville, NC (www.rhahealthservices.org).

“Blue Wolf’s acquisition validates our commitment to the dignity, independence, and equitable treatment of people, as well as their full inclusion into the communities around them,” said Jeanne Duncan, CEO of RHA. “Our team is incredibly proud of this milestone and all that we have accomplished together – and we’re excited to continue building RHA and enhancing our service offerings.”

“Blue Wolf’s approach to health care investing is centered around working with patient-centric organizations that deliver superior care and outcomes,” said Adam Blumenthal, managing partner of Blue Wolf. “RHA’s dedicated staff provide exceptional, high-quality care, as well as a safe and healthy environment for all individuals whom RHA serves. We are proud to welcome Jeanne and the entire RHA team into the Blue Wolf family as we partner to grow the business within the South Eastern and Mid-Atlantic United States.”

Blue Wolf invests from $25 million to $250 million of equity in companies that have at least $50 million of revenue and an enterprise value of $50 million to $500 million. Sectors of interest include healthcare, building products, energy services, manufacturing, distribution, and industrial. Blue Wolf is headquartered in New York (www.blue-wolf.com).

Formation and Safanad acquired RHA in 2015 and during their ownership term EBITDA doubled and, according to Formation, the sale to Blue Wolf generated a strong return. “As with all of our healthcare investments, a primary focus is the quality of the care delivered by the management team and RHA exceeded expectations in this area,” said Brian Beckwith, CEO of Formation. “A resident-focused approach will remain a focal point in new investments, which often leads to excellent returns.”

Formation Capital was founded in 1999 and focuses on investments in senior housing and care, and post-acute sectors. The firm is headquartered in Atlanta (www.formationcapital.com).

Safanad is a private equity and real estate investment firm with offices in New York, London and Dubai. Sectors of interest include healthcare, education, student housing and data centers (www.safanad.com). “We invested in RHA with a conviction that its market-leading platform would provide exceptional care thus generating superior returns in a growing sector,” said Kamal Bahamdan, CEO and founder of Safanad. “Healthcare is an important sector to Safanad, and we continue to want to commit to it. RHA has been another outstanding healthcare investment, and we look forward to seeing the company go on to even greater success under new ownership.”

MidCap Financial was the Sole Lead Arranger, Sole Bookrunner, and Administrative Agent for a $196 million senior secured credit facility that supported Blue Wolf’s buy of RHA. MidCap’s deal team was led by Melissa Morrison and Bryan Rupprecht. MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused, specialty finance firm that provides debt of $10 million to $750 million to companies across all industries.

Moelis & Company and KeyBanc Capital Markets were the financial advisors to Formation and Safanad.

This transaction closed on August 5, 2019.

© 2019 Private Equity Professional | October 1, 2019

Waud Capital Partners has acquired Ivy Rehab Network in partnership with the company’s founder and CEO Michael Neuscheler and the president of Ivy Midwest, Dave Franklin.

Ivy Rehab provides management support services to a network of 45 outpatient physical therapy centers – 43 owned and two managed centers – that are located in the Northeast (39 centers in NJ, NY, and CT) and Midwest (6 centers in IL and IN). The company was founded in 2003 and is headquartered near New York City in Harrison, NY (www.ivyrehab.com).

Waud Capital has known Mr. Neuscheler since 2014 when the firm first identified Ivy Rehab as a strong competitor in the physical therapy industry. According to Waud Capital, the acquisition of Ivy is an attractive entry point for the firm into the fragmented and growing outpatient rehabilitation therapy market. Growth for Ivy Rehab will come from a combination of new therapy center openings, acquisitions, and partnerships in both existing and new geographic markets.

Upon closing of the acquisition, Waud Capital added Jeremy VanDevender to Ivy’s senior management team as President and Chief Revenue Officer. Mr. VanDevender worked with Mr. Neuscheler at Ivy for eight years (April 2003 to August 2011) as the Executive Vice President of Business Development and Chief Clinical Officer. He left Ivy in August 2011 to join Accelerated Rehabilitation Centers (ARC) as Senior Vice President of Operations. ARC was acquired by Athletico Physical Therapy in December 2014.

“Waud Capital has been actively exploring investment opportunities in the outpatient physical therapy market for several years,” said Matt London, a principal at the firm. “The underlying dynamics in this highly fragmented market coupled with Ivy’s competitive position in its core markets, its reputation for clinical excellence and patient satisfaction, and the opportunity to assemble a best-in-class management team have created a compelling investment opportunity.”

Waud Capital makes investments from $50 million to $100 million in middle-market companies with enterprise values from $50 million to $250 million that operate in the healthcare services and business services sectors. Since its founding in 1993, Waud Capital has made more than 185 investments, including platform companies and follow-on opportunities.  The firm is headquartered in Chicago (www.waudcapital.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-10-16

Ancor Capital Partners has acquired DuvaSawko, a revenue-cycle and practice-management company serving the emergency healthcare sector. Ancor’s acquisition of DuvaSawko is the fifth healthcare company in the firm’s operating portfolio.

DuvaSawko provides its services to emergency physician groups and hospital-based emergency departments. The company has 30 plus customers that generate millions of annual patient visits in 70 facilities in 12 states. DuvaSawko has approximately 240 employees and is headquartered north of Daytona in Ormond Beach, FL (www.duvasawko.com).

DuvaSawko was founded in 1998 by CEO Charles Duva, MD, and Vice President and CIO William Sawko, MD. Both are Fellows of the American College of Emergency Physicians (FACEP). Drs. Duva and Sawko and other members of the senior management team are investing in the transaction alongside Ancor.

“We are pleased to partner with Chuck and Bill and the rest of the management team in this exciting growth company,” said J. Randall Keene, a partner at Ancor. “DuvaSawko has a similar philosophy to Ancor on the importance of corporate culture and how its positive influence can dramatically impact a company.”

Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is has offices in Southlake, TX and Dallas, TX (www.ancorcapital.com).

Minneapolis-based Yukon Partners (www.yukonpartners.com) provided mezzanine capital and also made an equity co-investment in DuvaSawko. This is the fifth investment in which Ancor and Yukon have partnered together.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-29-16

Salt Creek Capital has acquired WorkWell Medical Group, a central California provider of occupational medicine and urgent care services.

WorkWell Medical Group provides health products and services to patients and employers to improve healing time for employees, enabling them to return to work more quickly. The company owns and manages five medical clinics that provide occupational medicine, workers compensation care and case management, and urgent care services throughout the central coast of California. WorkWell Medical Group was founded in 2003 by Dr. Sheilaja Mittal and Vikram Mittal and is headquartered in Salinas, CA (www.workwellmedical.com).

“WorkWell has developed an outstanding and diverse client base by delivering high-quality patient care, convenience and experience. We are excited to partner with Dr. Sheilaja and Vikram Mittal on this transaction and look forward to their continued support through the next phase of growth,” said Dan Phelps, a Managing Director of Salt Creek Capital.

Salt Creek Capital invests in executive-led buyouts of companies with EBITDA from $750,000 to $5 million. Sectors of interest are varied making the firm nearly industry agnostic but areas of specific interest include manufacturing, business and consumer services, distribution, and franchisors. The firm is based in Menlo Park (www.saltcreekcap.com).

As part of this transaction Talha Ashraf – a participant in Salt Creek Capital’s Executive Partnership Program and a former senior executive with Kindred Healthcare – will become the new President and CEO of WorkWell. “It has been a great experience working with Salt Creek Capital and Dr. and Mr. Mittal throughout the transaction process,” said Mr. Ashraf.  “I am excited to take on the lead operating role with an industry-leading occupational medicine and urgent care provider with such an impressive, caring and dedicated team.”

Healthcare-focused investment bank Edgemont Capital Partners (www.edgemontcapital.com) was the exclusive financial advisor to WorkWell Medical. Luke Mitchell, an Edgemont Managing Director and head of the firm’s efforts with office-based physician services groups, led the transaction for Edgemont along with Associate Vitaliy Marchenko.

“Through twelve years of dedication and tireless devotion to quality clinical care and patient satisfaction, WorkWell has earned its reputation throughout California and the Western US as being the go-to provider of walk-in medical services for patients and employers in central California,” said Mr. Mitchell. “WorkWell was seeking a financial partner to provide the experience, capital, and management expertise to support the company’s tremendous growth, including its plans to expand to other parts of California. Out of a comprehensive and highly competitive marketing process, Edgemont identified Salt Creek as an ideal partner for WorkWell.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Pharos Capital Group has acquired a control equity interest in MOTION PT Holdings, a provider of physical therapy and occupational therapy services in New York.

MOTION was formed through the combination of Brooklyn-based MetroSportsMed with Manhattan-based STAR Physical Therapy.  MetroSportsMed was established in 1995 by David Menche, MD. The company combined with STAR Physical Therapy in 2015 to form MOTION PT Holdings.  The combined company has 165 employees and is headquartered in Brooklyn with 10 locations in Brooklyn, Manhattan and Long Island (www.metrosportsmed.com) (www.starphysicaltherapy.com).  The company will continue to use the MetroSportsMed and STAR brands.

Dr. Menche will become Chairman of MOTION and Edward Miersch of MetroSportsMed will become the company’s President and CEO.  Michael Fox of STAR Physical Therapy becomes MOTION’S Chief Clinical Director and Benjamin Gelfand will be the Chief of Clinical Services.

The day-to-day operations of the company will be led by Mr. Miersch, who has decades of experience as an operator in the physical therapy industry.   He will also be responsible for acquiring and consolidating other physical therapy businesses both within New York and in other geographies.

“Pharos has unique experience with underserved markets and mid-sized healthcare businesses, and we are delighted to be working with Dr. Menche, Ed Miersch, and the MOTION management team to find bolt-on acquisition opportunities that will help the platform build the premier physical therapy network,” said Jim Phillips, Partner at Pharos.

“As hospitals across the country look to defray costs, we believe MOTION can capitalize on the movement by healthcare systems to outsource physical therapy services to expert third party providers,” said Pharos Principal Joseph Acevedo.  “MOTION is well positioned to take advantage of this trend and expand its network.”

Pharos Capital Group invests $25 million to $50 million in companies seeking later stage funding for internal growth, acquisitions, management buyouts or recapitalizations. The firm invests across many sectors but has a particular interest in healthcare and business services. Pharos has offices in Dallas and Nashville (www.pharosfunds.com).

The investment in MOTION marks the third portfolio investment from Pharos Fund III and follows Pharos’ January 2014 acquisition of behavioral health services provider Seaside Healthcare and the May 2014 acquisition of Employee Benefit Solutions, a provider of healthcare cost containment and wellness programs.

Investment bank Livingstone Partners (www.livingstonepartners.com) was the financial advisor to MOTION.

2015 PEPD • Private Equity’s Leading News Magazine • 6-29-15