Three financial buyers are vying for Bristol Hospice in the late innings of its sales process, Buyouts has learned.
Finalists for the hospice-care-services provider include H.I.G. Capital, another sponsor and a PE-backed platform, one of three sources familiar with the situation said.
Edge Healthcare Partners is offering financial advice to Bristol, a subsidiary of closely held senior-care provider Avalon Health Care, two of the sources said.
The Atlanta boutique investment firm has represented many hospice and home-health providers on past deals, including pediatric-home-care provider PSA Healthcare on its recent merger with Bain Capital’s Epic Health Services.
Bristol anticipates 2017 EBITDA of roughly $9 million, the three sources said. The provider of hospice care is expected to command a multiple of EBITDA in the single digits, one of the people said.
Led by CEO Charles H. Gonzales, Bristol through its subsidiaries provides various hospice services across California, Georgia, Hawaii, Oklahoma, Oregon, Texas and Utah.
Hospice programs include pain and symptom management, spiritual counseling, therapy, skilled nursing care, hospice aide, continuous care, outpatient services, general inpatient services, respite care services and durable medical equipment, among other things.
Services are reimbursed through Medicare Part A, Medicaid and third-party insurance, according to Bristol’s website.
Sources described Bristol as a good business but one with complexities given that it operates under Avalon Health Care. Avalon operates numerous skilled nursing facilities and Bristol has a handful of joint ventures with other healthcare facilities that may need unwinding, one of the people noted.
As the Bristol process nears conclusion, another PE-backed platform, Clearview Capital’s St. Croix Hospice, navigates its way toward a sale.
First-round bids for the Midwest-concentrated company were due last week, Buyouts reported.
The Cain Brothers– and Triple Tree-run sales process for St. Croix encompasses both PE and strategics. St. Croix generates EBITDA in the $15 million to $18 million range, sources have since told Buyouts.
Representatives of Edge and H.I.G. did not immediately return requests for comment, while those at Avalon couldn’t be reached.
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