Babson Capital announced that it provided $22.2 million of mezzanine debt financing and made an equity co-investment of $2.2 million to support Kohlberg & Co.‘s acquisition of SouthernCare Inc. SouthernCare is based in Dallas and is a provider of hospice care. The company was formed in 1994.
Babson Capital Management LLC (Babson Capital), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced it provided $22.2 million of mezzanine debt financing and made an equity co-investment of $2.2 million to support Kohlberg & Company LLC’s acquisition of SouthernCare Inc.
Dallas-based SouthernCare, founded in 1994, is a leading provider of comprehensive hospice care, caring for more than 3,000 terminally ill patients daily at 75 centers in 15 states throughout the Midwest and Southeast. Working with an interdisciplinary team of physicians, nurses, spiritual counselors and volunteers, SouthernCare’s 1,500-plus caregivers play an integral role in the lives of patients and family members by reducing pain and enhancing quality of life.
“The partnership of Babson Capital and Kohlberg & Company combines complementary strengths and skillsets that will enable us to provide the strong support SouthernCare’s management team needs to build on its track record of growth and success,” said Benjamin Mao, partner at Kohlberg & Company LLC. “Babson Capital’s expertise in fundamental, bottom-up analysis and its wealth of experience in middle-market transactions make it an ideal partner to support Kohlberg & Company’s acquisition of SouthernCare.”
“Babson Capital is pleased to join with Kohlberg & Company in supporting SouthernCare’s management,” said Mike Klofas, managing director and co-head of the Mezzanine and Private Equity Group at Babson Capital. “Our investment in SouthernCare is one of 18 platform investments we have made so far in 2011 and is consistent with our long-established model of partnering with strong private equity sponsors to help middle-market companies with proven success strategies achieve their growth potential.”
About Kohlberg & Company LLC
Kohlberg & Company LLC is a leading U.S. private equity firm headquartered in Mt. Kisco, New York. Since its inception in 1987, Kohlberg has completed 57 platform investments and more than 100 add-on acquisitions, with aggregate transaction value in excess of $8 billion. Kohlberg has invested over $3 billion across six private equity funds to date, including through its current $1.5 billion sixth fund, Kohlberg Investors VI. For more information, visit www.kohlberg.com .
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $137.3 billion in assets under management as of Sept. 30, 2011. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn.