Global private equity firm Advent International, has agreed to acquire Dallas-based post-acute and hospice provider AccentCare Inc., for an undisclosed amount. The transaction is Advent’s first acquisition in the hospice and home health space, company representatives told Hospice News.
Advent will purchase the company from Oak Hill Partners, a private equity company based in New York City.
“Home care and hospice is a large and growing market that we have kept a close eye on, particularly in the last five years,” Carmine Petrone, managing director at Advent, told Hospice News. “We believe that having an integrated offering, like AccentCare, where we can continue to leverage their joint venture model and partnerships with payors and systems, will be key to the success of the business.”
AccentCare provides post-acute care to more than 110,000 patients annually in 16 states, with services including including hospice, home health care, personal care, skilled nursing, rehabilitation, and care management.
Private equity interest in the hospice space has been on the rise, a trend expected to continue through 2019 and beyond, driven by favorable demographics, the fragmented nature of the industry, increased awareness and acceptable of hospice, and transitions toward a value-based care model. Hospice company valuations have reached record levels.
“As patients and families look for lower cost, compassionate in-home care, we expect home health services like hospice to continue to grow,” Petrone said. “AccentCare has a diverse offering that we see as an opportunity to establish brand loyalty with patients, providing care at every step of the way from personal care to hospice.”
Barclays, Deutsche Bank and RBC served as financial advisors to Advent International on the transaction; Harris Williams & Co. and J.P. Morgan advised AccentCare.
Globally, Advent International has invested more $7 billion in 42 companies in the health care sector. The firm indicated it plans to grow AccentCare’s footprint through strategic acquisitions.
“We see tremendous opportunity to build upon AccentCare’s well-established platform and expand its offerings to help care for more patients, including looking at investments in palliative care and more advanced in-home clinical services with nurse practitioners,” Petrone told Hospice News. “To date, [AccentCare] has made a number of strategic joint ventures and acquisitions across the space to expand their capabilities, and we plan to build on these initiatives.”
Among those initiatives, AccentCare in Dec. 2018 acquired Steward Home Care and Hospice, which serves 14,000 patients per year in Massachusetts and New Hampshire.
“AccentCare has developed strong partnerships with leading health plans, health systems and provider groups across the country as a result of its consistently leading quality of care,” said Nick Owens, a director at Harris Williams. “These partnerships combined with a growing home care market provide attractive opportunities in key markets and position the company for continued organic and acquisitive growth across all business lines.”