Webster Capital won the sponsor-driven auction for Bristol Hospice in a deal valued just north of $70 million, Buyouts has learned.
The middle-market PE firm announced the deal on Thursday, confirming an August Buyouts report. The transaction completed a sales process by Edge Healthcare Partners, an Atlanta boutique investment firm.
The price tag equates to an 8x multiple of Bristol’s projected $9 million in last-12-months EBITDA for 2017, implying an enterprise value of $72 million, the sources said.
Webster was among three finalists vying for the hospice-care provider. H.I.G. Capital and another PE-backed platform also participated, Buyouts reported in June.
Bristol, Salt Lake City, was a subsidiary of closely held senior-care provider Avalon Health Care. Led by recently appointed CEO Kirton Hyrum, Bristol encompasses 11 locations across seven states. Hyrum succeeded Charles H. Gonzales in September, LinkedIn shows.
The group’s hospice programs include pain and symptom management, spiritual counseling, therapy, skilled nursing care, hospice aid, 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.
The transaction follows Vistria Group’s secondary buyout of St. Croix Hospice from Clearview Capital in October, which resulted from a Cain Brothers- and Triple Tree-run auction.
Terms weren’t disclosed, but sources previously said that Midwest-concentrated St. Croix was projecting at least $15 million in 2017 EBITDA.
While additional lower-middle-market activity in hospice care is expected in coming months, the two sector giants to keep an eye on are Curo Health Services, owned by Thomas H. Lee, and Hospice Compassus, a portfolio company of Audax Group and Formation Capital.
Action Item: Webster’s current portfolio: www.webstercapital.com/portfolio.php