Webster to make more than 10x its money with Epic Health sale: source

Webster Capital expects to make more than 10x its investment with its sale of Epic Health Services, a source said.

Bain Capital Private Equity said Dec. 19 it agreed to buy Epic Health. Financial terms weren’t announced but Epic was expected to fetch around $1 billion, Buyouts has reported.

Founded in 2001, Dallas-based Epic Health provides care to 46,640 medically fragile children and adults in 18 states including Colorado, New Jersey, Pennsylvania and Texas. Webster Capital invested in Epic Health in 2010.

Epic’s management team, led by President and CEO Chris Roussos, will continue to lead the company, a statement said.

Buyouts first reported news of the Epic Health auction in February. Goldman Sachs advised on the process. The Epic Health auction began in September, Buyouts said.

“All of the big megabuyout healthcare guys were involved,” the source said.

Webster, Waltham, Massachusetts, invests in middle-market consumer and healthcare companies with EBITDA of $3 million to $15 million. The firm’s last fund, Webster Capital III LP, closed at $400 million in 2014. Fund III was more than half deployed in May, press reports said. Webster Capital is expected to come back in 2018 for its fourth fund.

Webster Capital is named after the founding partner’s dog, a Labrador retriever. In fact, a photo of Webster appears on the firm’s website.

Goodwin Procter was the attorney for Epic/Webster. Barclays, BMO Capital Markets, and RBC Capital Markets advised Bain Capital and also committed financing for the deal. Kirkland & Ellis was Bain’s attorney while PwC was its accounting adviser.

Webster declined comment. Epic and Bain could not be reached for comment.

Action Item: Contact Epic Health: +1 214-466-1340

Photo courtesy of ©iStock/didesign021