Dallas-based Intrepid USA is gearing up for rapid growth in 2022, fueled in part by an infusion of capital from new private equity investors. The recapitalization is expected to complete in that last quarter of the year or in early 2022, CEO John Kunysz told Hospice News.
Intrepid USA provides hospice, home health and personal care services across 17 states. Intrepid’s footprint spans 64 total locations; 17 of those are hospice operations. For the past 15 years the company has received backing from the family office Patriarch Partners, and is currently working with specialty investment bank Zeigler and Co. to secure additional private equity partners.
“We’ll be bringing in new private equity money to back us and the management team as a platform play in the industry,” Kunysz said. “The opportunities for growth through acquisitions are tremendous. We’re fortunate to have a large enough fully scaled platform with a solid management team and back office operations that lets us be the ideal platform play for somebody looking to do expansions and acquisitions.”
Intrepid’s hospice strategy will focus on co-locating those service locations in markets where it already has a home health presence, including purchasing smaller providers or dormant licenses. The company’s predominantly rural footprint will provide ample opportunity to build density in target markets, Kunysz told Hospice News. De novos will also be a component of that strategy.
Private equity interest in the hospice sector has been gaining momentum in recent years, raising the stakes in hospice deals and stepping up competition for acquisition targets. Private equity transactions and an influx of new deals during 2021 could drive up hospice valuations that have already reached record highs, with multiples reaching 26x in 2020.
Private equity hospice transactions rose nearly 25% between 2011 to 2020, according to a recent industry transaction report that M&A advisory firm The Braff Group shared with Hospice News.
In pursuing transactions, Intrepid plans to adopt a partnership model that would bring the acquisition’s current owners into their fold.
“I want companies that have 20-50 year histories — maybe second or third generation owners that don’t just want to turn the keys in — but want to partner up with somebody who has the same vision for this continuum of care model,” Kunysz said. “That’s relationship capital that you can’t just buy. That’s our vision.”
Companies featured in this article:
Intrepid USA, Patriarch Partners, The Braff Group, Zeigler and Co.
