Bain Capital Private Equity has agreed to acquire Dallas-based Epic Health Services, a provider of home health care services for medically fragile children. The seller is Webster Capital. No financial terms were disclosed. Goldman Sachs provided financial advice to Epic Health Services and Webster Capital on the transaction while Barclays, BMO Capital Markets and RBC Capital Markets LLC did likewise for Bain Capital Private Equity.
DALLAS, TX | BOSTON, MA | – December 19, 2016 – Epic Health Services, the foremost United States provider of home health care services to medically-fragile children, today announced the signing of a definitive agreement to be acquired by Bain Capital Private Equity, a
leading global private investment firm. Epic Health Services will continue to be operated by its current management team under the leadership of President and CEO Chris Roussos.
Financial terms of the private purchase from Webster Capital were not disclosed.
Founded in 2001 and headquartered in Dallas, Epic Health Services offers the only complete continuum of home health services for children in fragile health after they are released from acute care facilities. The company provides pediatric private duty nursing, therapy, developmental services, and medical solutions, including enteral nutrition, respiratory, medical supplies, and pharmacy. Epic Health Services also provides a spectrum of adult home health care services including skilled nursing, therapy, personal care, behavioral health nursing, enteral nutrition, and medical supplies.
“Because of advances in technology and health care delivery, home health care has become a preferred alternative to remaining in a health care facility for children facing difficult health obstacles and their families. Epic Health Services enables these children to receive high quality
care in the comfort of their own homes while supporting their families and helping create an environment of normalcy in the home,” said Chris Roussos, President and CEO of Epic Health Services. “We thank the team at Webster Capital for helping us progress to where we are
today, and we look forward to working with Bain Capital Private Equity to extend our continuum of care to serve even more patients and families with these vital services.”
Bain Capital Private Equity has a long history of successful investments in healthcare businesses including Acadia Healthcare Company, Inc. Beacon Health Systems, HCA Holdings, Inc., Navicure, Inc., Physio-Control Corporation, Quintiles IMS Holdings, Inc., QuVa Pharma, Inc., and Warner Chilcott plc.
“Through our experience investing across the healthcare value chain, we have seen that home health care is mission critical to yielding better healthcare outcomes, and we are excited to work with the Epic Health Services team to extend the company’s comprehensive value proposition
to patients and families,” said Chris Gordon, a Managing Director at Bain Capital Private Equity.
“We look forward to working with Epic Health Services to continue its strong track record of growth and delivery of cost effective solutions to a patient population with significant needs,” added Devin O’Reilly, a Managing Director at Bain Capital Private Equity.
Epic Health Services was purchased by Webster Capital in August 2010. Since then, Epic Health Services has expanded into 21 states and broadened its service offerings beyond pediatric private duty nursing to include therapy, enteral nutrition, and autism services, among
“We are extremely happy with the outcome and would like to thank management for all they have done to grow the business,” said David Malm, Co-Managing Partner and Head of Healthcare Services at Webster Capital. “It has truly been a pleasure to work with everyone at Epic Health Services to build the organization. In the years to come, we believe that Bain Capital Private Equity is the best partner to help Epic Health Services realize its full potential,” added John Garbarino, a Partner at Webster Capital and Epic Health Services Board Chairman.
The transaction is expected to close during the first quarter of 2017. Goldman Sachs & Co. served as the exclusive financial advisor, and Goodwin Procter LLP acted as legal counsel to Epic Health Services and Webster Capital. Barclays, BMO Capital Markets, and RBC Capital Markets LLC served as financial advisors to Bain Capital Private Equity and are providing committed financing for the transaction. Kirkland & Ellis LLP is serving as legal counsel, and PwC LLP is acting as accounting advisor to Bain Capital Private Equity.
About Epic Health Services
Epic Health Services was founded in 2001 and has since become the leading national provider of pediatric skilled nursing, therapy, developmental services, and home medical solutions, including enteral nutrition, respiratory, pharmacy, and medical supplies. Epic also provides a spectrum of adult home health care services including skilled nursing, therapy, personal care, behavioral health nursing, enteral nutrition, and medical supplies. In 2016, the Epic Team served and provided life-sustaining care to patients in 21 states, helping them and their families to thrive, not merely survive. Success in health care requires the delivery of exceptional care that meets the needs of patients, families, payers, regulatory agencies, and society. By maintaining a focus on high quality care, extraordinary customer service, and compliance, Epic continues to grow its best-in-class, pediatric continuum of care to serve even more patients across the United States. For further information, please visit www.epichealthservices.com.
About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our team of more than 220 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries including consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
About Webster Capital
Founded in 2003, Webster Capital is a private equity firm, which helps companies unlock their potential. Webster focuses on branded consumer and healthcare services companies with EBITDA between $3 million to $15 million. Webster Capital provides equity financing, expertise, and a broad contact network for management buyouts and growth capital. At present, Webster has $600 million under management and is currently investing Fund III, a $400 million fund raised in 2014. For additional information on Webster Capital, please visit www.webstercapital.com.