Centerbridge, Vistria team up in $1.4bn deal for Wellspring’s Help at Home

Five years into its investment, Wellspring will stay on as a minority investor in the provider of in-home care for seniors and individuals with disabilities.

Centerbridge Partners and Vistria Group are joining hands again, clinching an approximately $1.4 billion deal for Help at Home as demand for in-home care accelerates, people familiar with the matter told PE Hub.

Wellspring Capital Management will roll equity in the deal, retaining a minority investment, one of the people said. The New York firm is about five years into its hold, having originally invested in the business out of Fund V, a $1.2 billion vehicle. 

An agreement was signed earlier this week, coming together on a one-off basis and preempting the sellers’ previous plans to conduct a formal sale process, sources said. 

The deal was valued off of EBITDA in the $110 million to $120 million range, the people said, implying a low-double-digit multiple.  

Jefferies provided sell-side advice on the deal, they said. 

Headquartered in Chicago, Help at Home provides in-home care to seniors and persons with disabilities across 13 states. The business provides various nonmedical home care services ranging from meal planning and light housekeeping to laundry and dressing, as well as home health and community living services. 

The transaction underscores seniors’ growing preference to receive integrated care at home, a trend poised for further acceleration with the prevalence of covid-19 deaths in SNFs (skilled nursing facilities), sources said. At the same time, sponsors through the downturn have remained eager to invest behind opportunities that drive more patients to care services outside of the hospital – the most expensive setting – thus reducing medical spend. 

New York’s Centerbridge and Chicago-based Vistria know each other well.

The pair of firms jointly purchased Civitas, which provides in-home and community-based care to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. 

The firms’ $1.4 billion take-private deal closed in March 2019, providing an exit for sellers including Vestar Capital Partners. 

For Centerbridge, the deal follows its 2019 investment in GoHealth, an online exchange which helps individuals shop for healthcare insurance. The deal was valued at approximately $1.5 billion including an earnout component, sources said at the time. In July, GoHealth raised $914 million in its public debut. 

Vistria and Jefferies declined to comment. A Centerbridge spokesperson and Wellspring did not return requests for comment. 

Action Item: Check out Centerbridge’s latest form ADV