HIG set to buy CORA Health Services for over $500m, Bain’s US LBM snaps up American Construction Source

HIG makes another healthcare investment, this time in physical therapy, while Bain-backed US LBM grows its building materials platform.

Happy Tuesday, everyone!

Today we have a healthcare scoop along with news on private equity deal activity in the industrial space.

Second take: As the physical therapy market continues to rebound amid the reopening of the country, HIG Capital has decided to acquire CORA Health Services from Gryphon Investors, multiple sources told PE Hub.

Jefferies was hired early last year to run the sale process but Gryphon’s exit plans were put on hold due to the pandemic. The investment bank continued as the sell-side advisor and re-launched a formal auction process in February of this year.

The deal, which was signed a couple weeks ago, values CORA at more than $500 million, according to some of the people. HIG is acquiring the Charlotte, North Carolina-based company – which does business as CORA Physical Therapy – through the H.I.G. Advantage fund, they said.

While the broader physical therapy sector is poised to benefit from various long-term tailwinds, CORA in particular, one source said, is run by a strong management team and plays in a growing region of the country – Florida and the southeast – adding appeal to the sponsor community. More generally, this source added, assets with diversity in geography or in markets where shutdowns were less draconian than elsewhere have tended to have stronger volumes.

Read Sarah’s story on PE Hubconfirmed by the parties shortly after in a Tuesday announcement.

Bain’s US LBM grows: Angeles Equity Partners and Clearlake Capital Group-backed American Construction Source, a lumber and building materials (LBM) distribution platform, is being acquired by Bain Capital’s US LBM. 

ACS, formed by the PE duo in 2018, serves custom home builders, repair and remodel contractors, and do-it-yourself homeowners. The company was created by merging three leading regional LBM distributors and later went on to acquire nine businesses.

Buffalo Grove, Illinois-based US LBM, acquired by Bain Capital late last year, provides building materials such as cabinetry, roofing and windows to builders and specialty contractors. The addition of ACS will grow its building materials distribution network by more than 70 locations across the nation, according the press release.

Read the full brief on PE Hub.

That’s it! Have a great week ahead, and in the meantime, hit me up with any thoughts, feedback, or tips at karishma.v@peimedia.com