Franklin, Tenn.-based American Health Partners has agreed to become a subsidiary of the Mitchell Family Office, an investment firm that concentrates on the health care sector. American Health Care Partners provides a range of senior care services across nine states, including hospice. Financial terms were undisclosed.
American Health Partners is currently privately owned. In addition to hospice, the company operates senior living, skilled nursing and rehabilitation facilities, home health, pharmacy and medical staffing businesses as well as psychiatric hospitals.
“This is an important step forward in the evolution of our company,” said Michael Bailey, CEO of American Health Partners. “This ownership agreement presents an exciting opportunity for American Health Partners. [Mitchell Family Office] has the expertise and financial resources to build on our strong foundation, fund our strategic plan and enhance our ability to seize new growth opportunities.”
American Health Partners’ hospice and home health operations provide care in 34 counties in Alabama and Mississippi. Through its other business lines the company’s footprint extends into Georgia, Kansas, Missouri, Oklahoma, Utah, Texas and Tennessee.
Michigan-headquartered Mitchell Family Office was founded by managing partner Mark Mitchell.
Family offices are becoming more prevalent in the hospice market. These are typically family units who incorporate, pool financial resources and purchase business assets, typically with representation by a banker or broker.
While some acquirers typically assume management of a company and install its own executive leadership, a family office is more likely to retain current management and offer them much more autonomy. That will be the case with this transaction as well. Bailey will remain as CEO with Robin Bradley staying on as chief operating officer and Jeff Bogle as CFO.
Private-equity firms have been investing heavily in hospice during the past few years, a trend that is not expected to slow. However, a new crop of investors are also moving into the space. Family offices and search funds are also seeking to capitalize on rising demand and the promise of demographic tailwinds as the population ages.
“We are very selective on where we choose to invest,” Mitchell said. “With its full continuum of health care services, a strong management team and a growing Medicare Advantage business, we view American Health Partners as a company with tremendous growth opportunities.”