Home Health Services Acquired by Professional HealthCare,
a Mainsail Partners Portfolio Company
Pittsburgh, PA – February 3, 2010 – Mainsail Partners, a private equity firm focused on building businesses in conjunction with management, and its portfolio company, Professional HealthCare, a holding company formed to acquire and grow leading regional providers of home nursing, hospice and private duty services, recently announced the acquisition of Home Health Services, Inc. (“HHS”) of St. George, Utah.
The Braff Group (TBG) initiated the transaction, conducted negotiations, and served as exclusive merger and acquisition advisor for Home Health Services.
“Since we partnered with John Griscavage to build Professional HealthCare, company revenue has grown over 300% through a combination of strong organic efforts and disciplined acquisitions,” said C. Jason Payne, Managing Partner, Mainsail Partners. “With the recent addition of HHS, Professional HealthCare enters the next phase of growth opportunity with its entry into two new states.”
HHS is the third company to be acquired by Professional HealthCare over the last two years. Mainsail invested in a recapitalization of the original business in August 2006 and has since acted as the “outsourced” corporate development arm of the company, identifying and evaluating multiple acquisition opportunities in partnership with Professional HealthCare. Professional HealthCare previously acquired Haven Home Health in January 2008 and Victorian Home Care in June 2008 with additional financing from Mainsail.
“We are excited about the growth opportunities afforded by this acquisition. The high quality clinical focus of the team at HHS is a perfect complement with our other home health and hospice agencies and branches,” said John Griscavage, CEO of Professional HealthCare. “As a valued partner in our business, Mainsail Partners provides an informed perspective on strategy and financing, which has been instrumental to our completion of this acquisition and our company’s ongoing success.”
“We could very well see record breaking activity in home health and hospice mergers and acquisitions in 2010,” said Steve Braff, TBG Managing Director who headed up the deal team representing Home Health Services. “In 2009, many ‘would-be’ buyers and sellers stayed on the sidelines awaiting the outcome of health care reform. Although the fate of reform is still unclear, the market has gotten comfortable that the industry can weather these initiatives should they come to pass. Accordingly, we enter the year with pent-up acquisition demand and supply that bodes well for a robust year in health care services M&A.”
About Professional HealthCare
Professional HealthCare is a holding company formed to build leading regional providers of home nursing, hospice and private duty services. Professional HealthCare's subsidiaries deliver high quality, patient-centric care through operations in California, Arizona, Nevada and Utah. For more information, please visit www.professionalhc.com.
About Mainsail Partners
Founded by Jason Payne and Gavin Turner in 2003, Mainsail Partners is a private equity firm that invests exclusively in profitable, growing and “bootstrapped” companies in the United States and Canada. With $150 million under management, Mainsail provides both the capital and experience to lead successful management buyouts, recapitalizations and growth equity investments. They work in partnership with management to build their portfolio companies into market leaders. For more information, please visit www.mainsailpartners.com. CONTACT: Courtney Esposto, Mainsail Partners courtney@mainsailpartners.com
About The Braff Group
The Braff Group is the leading investment banking firm specializing in the home health care, hospice, infusion therapy, specialty pharmacy, health care staffing, and home medical equipment market sectors. The firm provides an array of transactional advisory services including sell side representation, debt and equity recapitalizations, strategic planning, and valuation. Since being founded in 1998, The Braff Group has completed more than 155 transactions. CONTACT: Dexter W. Braff, The Braff Group, dbraff@thebraffgroup.com |
