Senior LIFE, which provides and manages prescription medications and offers coordinated health and support services to seniors, is weighing its options, according to four people familiar with the matter.
A sale process recently kicked off for the privately-owned company, targeting private equity bidders, according to the people.
Houlihan Lokey is advising on the process, which is in its early stages, the people said.
The Johnstown, Pennsylvania, company is marketing around $100 million in EBITDA, sources said.
Senior LIFE encompasses a pharmacy business, as well as operating its own Pennsylvania-focused PACE program and skilled nursing facilities. Sources attributed most of the company’s growth to the pharmacy segment of the company.
With 12 locations across 14 Pennsylvania counties, Senior LIFE’s PACE program offers coordinated care services that help individuals continue living at home independently while accessing the healthcare and support.
Funded by Medicare and Medicaid, members of the Senior LIFE program receive an individualized care plan that covers all medically necessary services, running from nursing and in-home services to transportation and nutritional counseling.
Although PACE has been around for three-plus decades, the model of care is still nascent in penetration. But PACE is viewed as having a significant runway for expansion as more states recognize the huge cost-savings that can be saved on complex patient populations, enabling such programs to be set up, sources said.
Signalling growth in the niche industry, the process for Senior LIFE comes on the heels of Apax Partners’ acquisition of a stake in InnovAge, one of the largest PACE organizations in the country and one of few for-profit providers.
In connection with the pending deal, existing investor Welsh, Carson, Anderson & Stowe is set to maintain a nearly 50 percent stake in the company, PE Hub wrote last week. The transaction valued the provider of PACE at $950 million, sources familiar with the matter said.
Senior LIFE executives couldn’t be reached. Houlihan Lokey declined to comment.
Action Item: Learn more about Senior LIFE