Advent International said May 16 that it agreed to buy AccentCare Inc. Financial terms weren’t announced. Oak Hill Capital Partners is the seller. AccentCare, of Dallas, offers a range of services including personal, non-medical care to skilled nursing, rehabilitation, hospice care and care management across 16 states.
Advent International Acquires AccentCare
• Investment to strengthen and scale AccentCare’s leadership in a fast-growing and fragmented market
BOSTON and LONDON, May 16, 2019 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire AccentCare, Inc., a nationwide leader in post-acute healthcare, from private equity firm Oak Hill Capital Partners (“Oak Hill“). Financial terms of the transaction were not disclosed.
“AccentCare is a terrific platform that is setting the standard for high-quality home and community-based healthcare,” said Carmine Petrone, Managing Director at Advent. “In partnership with the talented AccentCare management team, we see numerous avenues to use its industry-leading infrastructure to expand into new service areas and offer additional clinical capabilities, which will enable the Company to care for more patients in partnership with physicians, health systems and insurance plans.”
AccentCare is the sixth largest home health platform and the third largest personal care platform in the United States, offering a range of services – from personal, non-medical care to skilled nursing, rehabilitation, hospice care and care management – across 16 states. The company serves health systems, physician practices and managed care organizations, and includes strategic joint ventures and partnerships.
“We are thrilled to partner with Advent and continue AccentCare’s journey to create the most capable home-based care provider platform in the country,” said Stephan Rodgers, Chief Executive Officer at AccentCare. “Our business has demonstrated consistent organic revenue growth and together we will seek to further scale the business while delivering exceptional care to patients and families. We thank Oak Hill for their investment, support and counsel over the last nine years, which has been critically important in getting AccentCare to its current position in the market.”
The $100+ billion home care market is large and growing, as payors, providers and patients increasingly seek home health alternatives to more efficiently and effectively manage outcomes. Advent believes AccentCare is well-positioned to succeed in this environment, given its record of high-quality care, centralized, next-generation operating platform and deep relationships with referral sources. The firm plans to partner with AccentCare to find opportunities to invest in and grow the business, including through strategic acquisitions to expand geographically and build density.
“We are very proud of the great business we have helped build with Steve Rodgers and the senior leadership team at AccentCare,” said Stratton Heath, Partner at Oak Hill. “We are confident that Advent is the right partner to continue building this differentiated, next generation platform, and we look forward to seeing AccentCare improve the quality of more and more lives in the years ahead.”
Advent seeks to build world-class businesses positioned for long-term success, and the firm has significant investment experience in the healthcare industry. Over the past 29 years, the firm has invested $7.0 billion in 42 companies in the sector worldwide. Recent healthcare investments include BioDuro, a leading global life sciences contract research and development organization based in China; Zentiva, a top European generics pharmaceutical company; Deutsche Fachpflege Gruppe, Germany’s largest outpatient intensive care provider; and Syneos Health, Inc. (NASDAQ: SYNH), formerly INC Research Holdings, a U.S.-based global provider of outsourced clinical development and commercialization services to biopharmaceutical companies.
Barclays, Deutsche Bank and RBC served as financial advisors and Ropes & Gray served as legal counsel to Advent International on the transaction. Harris Williams & Co. and J.P. Morgan served as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to AccentCare on the transaction.
ABOUT ADVENT INTERNATIONAL
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 345 private equity transactions in 41 countries, and as of December 31, 2018, had $36 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 195 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com.
AccentCare, Inc. is a nationwide leader in post-acute healthcare, with innovative partnerships and care models covering the full continuum from personal, non-medical care to skilled nursing, rehabilitation, hospice, and care management. Headquartered in Dallas, Texas, AccentCare has over 24,000 compassionate professionals in more than 175 locations, collectively serving over 123,000 individuals across 16 states.
AccentCare has over 30 strategic partnerships with insurance companies, physician groups and major health systems, including joint venture companies branded as AccentCare Asante Home Health, AccentCare UCLA Health, AccentCare UC San Diego Health at Home, and Texas Home Health Group, an affiliation with Baylor Scott & White Health.
AccentCare leads the industry in avoidance of unplanned re-hospitalizations, faster starts of care, and quality performance. Among its distinctions, AccentCare has a 4.5-star quality rating for legacy home health agencies, many of which have earned the HomeCare Elite distinction. All legacy hospice locations are CHAP-accredited, many with designations from the We Honor Veterans program. Its approach to care, including proprietary RightPath disease-specific programs, leads the industry in avoidance of unplanned re-hospitalizations, faster starts of care, and quality performance.
ABOUT OAK HILL CAPITAL
Oak Hill Capital is a private equity firm managing funds with approximately $15 billion of initial capital commitments and co-investments since inception. Over the past 33 years, Oak Hill Capital and its predecessors have invested in over 90 private equity transactions across broad segments of the U.S. and global economies. Oak Hill Capital applies an industry-focused, theme-based approach to investing in the following sectors: Consumer, Retail & Distribution; Industrials; Media & Communications; and Services. Oak Hill works actively in partnership with management to implement strategic and operational initiatives to create franchise value. For more information, please visit http://www.oakhill.com/.