The auction of Epic Health Services is expected to launch next month, a source familiar with the transaction said.
Goldman Sachs is advising on the Epic sale, Buyouts has reported. Webster Capital is the seller.
The fourth quarter, after Wall Street returns from its summer break, is typically the busiest time for mergers and IPOs.
Founded in 2001, Epic Health provides care to 42,800 medically fragile children and adults in 18 states including Colorado, New Jersey, Pennsylvania and Texas.
Sponsor to win bidding: source
Webster Capital acquired the company, then known as Epic Medstaff Home Healthcare, in 2010. The deal was reportedly valued at $50 million.
Private equity is expected to bid for the Dallas company, several banking sources said. In February, Buyouts said Epic Health could fetch $800 million. The Wall Street Journal then reported in April that Epic could sell for 12x EBITDA, or around $1 billion.
Epic “will go to a sponsor,” a banker said.
Epic has made several add-ons this year, including the separate buys of Pediatric Special Care and Spring View Home Health Care this month. The company also bought Rehabilitation Associates, a pediatric therapy provider, in March. Epic employs 17,000 people, according to press reports.
Webster, Waltham, Massachusetts, invests in middle-market consumer and healthcare companies with EBITDA of $3 million to $15 million.
The firm’s last fund, Webster Capital III LP, closed at $400 million in 2014. Fund III was more than half deployed in May, press reports said.
Epic and Goldman could not be reached for comment.
Action Item: Contact Epic Health at +1 214-466-1340
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