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Wellspring is said to seek buyer for Great Lakes Caring

Wellspring Capital Management has put Great Lakes Caring up for sale, three sources said.

Houlihan Lokey is advising on the auction, the people said.

Refresh bids — proposals received after the second round that are meant to winnow the field to two or three parties — are due this week, one of the sources said. Wellspring is seeking around $300 million for Great Lakes, the source said.

Founded in 1994, Great Lakes is the Jackson, Mich., for-profit provider of in-home post-acute services for people with serious illnesses, the website says. Services include hospice and palliative care.

Great Lakes employs more than 2,600 people and serves more than 9,000 patients daily. This year, Great Lakes landed on the Inc. 5000 list of fastest growing private companies, ranking 4108, with $188.9 million in 2015 revenue.

Wellspring acquired Great Lakes in May 2014 from Pouschine Cook Capital Management. How much the firm spent is unclear.

The New York middle-market private equity firm started up in 1995 and now has more than $3 billion of PE capital. Wellspring has invested in companies including Dave & Buster’s Inc, Checkers Drive-In Restaurants Inc and Chemaid Laboratories Inc. In August, Wellspring sold National Seating & Mobility to Court Square.

Wellspring was expected to launch marketing for its sixth fund, Bloomberg reported in August 2015. Fund VI has a $1.2 billion target, the story said. Wellspring is currently in the market with its sixth pool and is nearing a first close, a placement agent said.

The PE firm’s fifth fund collected $1.2 billion in 2011. Wellspring Fund V produced a 15.3 percent net IRR and a 1.3x investment multiple as of Dec. 31, performance data from California Public Employees’ Retirement System said.

Executives for Wellspring and Houlihan Lokey declined comment. Great Lakes couldn’t be reached for comment.

Photo courtesy ©iStock/Cathy Yeulet