PE-backed Hospice Compassus taps adviser for upcoming sales process

  • Formation, Audax recapped hospice company in ’14
  • Auction to follow ~$1.4 bln sale of rival Curo
  • Bay City, MI, company has 140 locations in 30 states

Private equity-backed Hospice Compassus, one of the nation’s largest providers of hospice-care services, is prepping for a sales process, according to three people familiar with the matter.

Jefferies has been engaged to provide financial advice to the Bay City, Michigan, company, which is jointly owned by Formation Capital and Audax Private Equity, two of the people said. A formal process is expected to kick off later this year.

Hospice Compassus generates Ebitda in the ballpark of $80 million to $90 million, two of the people said. The company offers community-based hospice, palliative and home health care services, encompassing more than 140 locations in over 30 states.

The pool of possible suitors, the people suggested, could include buyout firms or strategic buyers such as LHC Group, Amedisys or Curo Health Services.

Humana, TPG Capital and Welsh, Carson, Anderson & Stowe last year teamed up to buy Curo from Thomas H. Lee for about $1.4 billion.

Formation, Atlanta, and Audax, with offices in Boston, New York and San Francisco, recapitalized Hospice Compassus in December 2014. The transaction, reportedly valued north of $300 million, provided an exit for the company’s former backer Cressey & Co.

Chicago’s Cressey in partnership with CEO Jim Deal founded the company in 2006.

Spokespeople with Audax and Jefferies declined comment, while those with Formation and Hospice Compassus didn’t immediately return requests for comment.

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