Genstar Capital has agreed to acquire Long Term Care Group Inc. from Advent International and CCP Equity Partners. No financial terms were disclosed. LTCG is an Eden Prairie, Minn.-based provider of outsourced services to the long term care insurance industry and the geriatric care market. It will serve as the cornerstone of a new senior care services platform called UniVita.
Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the industrial technology, life sciences, healthcare services, business services and software services industries, today announced that it has signed a definitive agreement to acquire Long Term Care Group, Inc. (LTCG) from Advent International and CCP Equity Partners, in partnership with LTCG’s management and industry veterans L. Ben Lytle and Hugh Lytle. LTCG is the initial investment in Genstar’s development of a new senior care services platform.
Long Term Care Group, based in Eden Prairie, MN was founded in 1996 and is the nation’s leader in outsourced services to the long term care insurance industry and an emerging player in the geriatric care services market. LTCG offers a complete range of outsourced services including application processing, underwriting, policy administration, clinical assessments, claims processing, care management, and a robust suite of professional services to long term care insurance companies and their policy holders.
The acquisition of LTCG is the initial investment in Genstar’s formation of UniVita Health, a new healthcare services platform centered on the concept of independent aging. UniVita was developed in partnership with healthcare industry veterans Ben and Hugh Lytle who will lead the management team and growth of the new platform.
LTCG is the only company in its market that supports a true “end to end” solution. With 1.3 million policies on its proprietary operating system and 27,000 claims under management, LTCG is the clear market leader. The company has developed deep relationships with many of the industry’s leading insurance carriers and provides services to 9 of the top 10 long term care industry players.
Bruce Baude, CEO of Long Term Care Group, said, “LTCG is perfectly positioned in front of several major trends including the aging of the baby boomers and the increased longevity we are experiencing in this country. The need for long term care insurance is becoming more visible everyday which will fuel our continued growth for many years to come. We are pleased that Genstar recognized the value that we bring and look forward to a long successful partnership.”
“Working with the proven team of Genstar and the Lytle’s is the right next step for our company,” added LTCG co-founder and President Peter Goldstein. “Our claims practices have always focused on promoting independence so the UniVita vision truly resonates with us.”
Genstar’s formation of UniVita Health as a new platform investment is consistent with its strategy of partnering with experienced operating executives to create attractive new business models and drive their growth. UniVita plans to become the largest national provider on a region-by-region basis of integrated independent aging services and advanced caregiving for seniors and their caregivers. It will target businesses that help seniors maintain their independence and ultimately live their last years with dignity. By integrating the products and services of these companies, UniVita will make the home a safe place for individuals to age, maintain support networks, and receive medical care.
James D. Nadauld, Vice President of Genstar, said, “Long Term Care Group is a strong company whose experienced and talented management team, led by Bruce Baude and Peter Goldstein, successfully built this business, and we are very enthusiastic about partnering with them to build on that growth. Genstar has a successful history of investing in healthcare services and earlier this year we agreed to leverage that expertise and develop an Independent Aging Platform in a new partnership with Ben and Hugh. Teaming with the Lytle’s and bringing LTCG into the UniVita platform is the first step in executing on the UniVita vision and strategy to create a comprehensive and integrated senior care services company. Having worked successfully with Ben and Hugh to build AXIA Health Management we have a tremendous amount of respect and admiration for them and we are excited to be teaming up with them and the LTCG management team to build UniVita.”
Ben Lytle, who serves as Executive Chairman of UniVita, said, “The demographics of the United States and the rising costs of long term care have positioned the long term care industry to experience significant growth. The unprecedented aging of the baby boom population and the increasing expected lifespan of seniors will create further opportunities that we hope to capitalize on for our investors.”
Hugh Lytle, who serves as Chief Executive Officer of UniVita, said, “We are very excited to be partnering again with Genstar and for LTCG to be UniVita’s initial investment. The company has a very attractive business model that offers significant benefits to its customers and represents a tailor made platform for launching UniVita’s independent aging strategy. As the market leader, we expect LTCG to grow significantly over the next several years as more insurance carriers and healthcare organizations recognize the benefits of outsourcing many of the services of their insurance management functions.”
Patrick Yount, the former CFO of former Genstar portfolio company Axia Health Management, will assume the COO and CFO roles at UniVita. Patrick will work closely with LTCG CFO Jeffrey Sjobeck to leverage LTCG’s corporate operations and position UniVita for its next acquisition.
Overall, the UniVita team will partner closely with the existing LTCG management team to execute the UniVita vision and strategy. The acquisition of LTCG is expected to be completed in December. Terms of the transaction were not disclosed.
About Long Term Care Group, Inc.
Long Term Care Group, Inc. (www.ltcg.com) is the country’s largest long term care administrator, providing services to over 30 long term care insurers including nine of the top 10. The company offers comprehensive policy administration including application processing, premium billing, customer service and claims and care management. In addition, LTCG has a well respected consulting practice specializing in product development, risk management, compliance and actuarial services. Under its Nation’s CareLink brand, LTCG provides a full range of both telephonic and face-to-face assessments utilizing its nationwide network of nurses. With almost 1,000 employees and over one million policies under management, LTCG is headquartered in Eden Prairie, Minnesota, and has operational centers in the Minneapolis, Nashville, Indianapolis and Orlando metropolitan areas.
About UniVita Health
UniVita Health will develop into an integrated senior care company that promotes independent aging through home-based care and support. Its mission is to help individuals maintain a life of peace-of-mind, dignity and independence as they age. UniVita is founded on the belief that a person’s home should be maintained as the center of independent living for as long as possible. In addition to improving lives, UniVita will offer opportunities for consumers, businesses and payers to manage the costs associated with this home-based care. The organization will assist families and end-users with financial planning and financing if necessary. UniVita will also offer decision-support tools that help individuals and payors select quality and cost-effective care providers, products and services in the local community.
About Genstar Capital, LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that for 20 years has been actively investing in high quality middle-market companies and building value in those businesses by utilizing the expertise of its operating partners. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating partners and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than $3 billion of committed capital under management and targets investments focused on selected sectors within the industrial technology, life sciences, healthcare services, business services and software services industries.