Oaktree Capital and MTS exit Senior Home Care

Kindred Healthcare has acquired Senior Home Care from Oaktree Capital Management and MTS Health Investors for $95 million. Houlihan Lokey served as advisor to SHC in the transaction, which closed on November 29, 2013. Headquartered in Clearwater, Florida, SHC is a provider of home health services targeting the Medicare population in Florida and Louisiana.


Houlihan Lokey is pleased to announce the sale of Senior Home Care, Inc. (SHC), a portfolio company of Oaktree Capital Management, L.P. and MTS Health Investors, LLC (MTS), to Kindred Healthcare, Inc. (NYSE: KND). Under the agreement, Kindred Healthcare acquired SHC for a total purchase price of $95 million. The transaction closed on November 29, 2013.
Founded in 1994 and headquartered in Clearwater, Fla., SHC is a market-leading provider of home health services targeting the Medicare population in Florida and Louisiana. SHC operates 47 locations in Florida and Louisiana and enjoys significant scale and regional density. The company is one of the largest privately held providers in the U.S. and currently generates annualized revenues of approximately $143 million. SHC has an excellent reputation driven by ethical patient service, clinical expertise, focused specialty programs, and unparalleled sales and marketing capabilities. More than half of SHC’s locations were named to the 2012 HomeCare Elite, a compilation of the top-performing home health agencies in the U.S.
Kindred Healthcare is the largest diversified provider of post-acute care services in the U.S. In Florida, Kindred currently operates 10 Transitional Care Hospitals (certified as long-term acute care hospitals) within SHC’s existing service areas. In Louisiana, Kindred currently operates one Transitional Care Hospital and, through its RehabCare division, five hospital-based acute rehabilitation units within SHC’s existing service areas. Kindred’s home care business, Kindred at Home, has a national presence that stretches coast-to-coast—the division has approximately 200 sites of service across 13 states, including the key states of Texas, California, Florida, and Ohio. This division has over $350 million in annualized revenues.
Oaktree is a leading global investment management firm focused on alternative markets, with $79.8 billion in assets under management as of September 30, 2013. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in distressed debt, corporate debt (including high-yield debt and senior loans), control investing, convertible securities, real estate, and listed equities. Headquartered in Los Angeles, the firm has over 750 employees and offices in 15 cities worldwide.
MTS is a private equity firm founded in 2000 and based in New York, N.Y. The firm seeks to make equity investments in operating companies within the healthcare industry with a focus on profitable companies that deliver cost-effective services and have the ability to gain market share in industry segments that are typically large, growing, fragmented, and poised for consolidation. MTS invests in companies based in the U.S. with valuations of $25 million to $300 million.
Houlihan Lokey’s Healthcare Group is a recognized leader in M&A advisory and capital-raising services, providing advice to healthcare services, managed care, healthcare IT, and life sciences companies. With approximately 30 investment bankers in Chicago, Dallas, and San Francisco, our team is among the largest dedicated healthcare investment banking groups in the country. Our Healthcare Group has closed more than 50 transactions since 2010.
Houlihan Lokey served as the exclusive financial advisor to SHC and assisted in initiating, marketing, structuring, and negotiating the transaction on behalf of the company and its investors.
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and Asia. Independent advice and intellectual rigor are hallmarks of our commitment to client success across our advisory services. Houlihan Lokey is ranked globally as the No. 1 restructuring advisor, the No. 1 M&A fairness opinion advisor over the past 10 years, and the No. 1 M&A advisor for U.S. transactions under $3 billion, according to Thomson Reuters.