American Hospice, which is backed by Riverside Co., has acquired two hospices from Hospice Care of the Southwest. Financial terms of the deal were not announced. The hospices are located in Conroe and Livingston, Texas. Hospice Care of the Southwest said it is keeping its primary operations that are located in Amarillo, Texas.
The Riverside Company’s American Hospice platform company entered the Texas market with the acquisition of two hospices from Hospice Care of the Southwest. With the additions, American Hospice now has locations in six states, including Arizona, Georgia, New Jersey, Oklahoma, Virginia and Texas. Hospice Care of the Southwest is retaining its primary operation in Amarillo, Texas.
American Hospice has its headquarters in Jacksonville, Florida, and is one of the 10 largest hospice providers in the country. Riverside purchased American Hospice in 2004, and made two prior add-on acquisitions of Embracing HospiceCare (2005) and Sun Health Hospice Group (September 2006). The newly acquired locations are in Conroe and Livingston, Texas, just north of Houston.
“This acquisition provides American Hospice with a strong foothold in the growing Houston area,” said Riverside Partner Suzy Kriscunas. “There are excellent growth opportunities in the Texas market, and American Hospice has a proven track record of excellent care and successful integration of new facilities. This is a great step for the company.”
The Conroe and Livingston hospices are licensed to serve an expansive 60 county area, including all of metro Houston and most of metro Austin. Livingston was established in 2006, with Conroe licensed in 2008.
“We’re excited about continuing to grow,” said American Hospice CEO Jeffrey Preuss. “These locations have enormous potential, and we’re looking forward to introducing our high standards of care to the Greater Houston area.”
In addition to Kriscunas, working on the deal for Riverside were Sarah Roth, Principal; Scott Bogard, Vice President; and Robert Avery, Senior Associate.
American Hospice was supported in the transaction by financing partners Wells Fargo, Healthcare Finance Group and Babson Capital. Waller Lansden Dortch & Davis, LLP provided legal counsel on the transaction, and Deloitte provided accounting due diligence.
The transaction is Riverside’s fourth healthcare acquisition of 2011 and its 57th overall, bolstering the firm’s deepest industry specialization. Overall, it is Riverside’s 16th acquisition of 2011.
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 260 transactions with a total enterprise value of more than $5.4 billion/€4.4 billion. The firm’s portfolio in North America, Europe and the Asia Pacific region includes more than 75 companies with roughly 14,000 employees. Riverside completes acquisitions smoothly thanks to $3.4 billion/€2.7 billion in assets under management, more than 200 professionals in 19 offices, and longstanding relationships with partner lenders.