Market Overview

Home Health And Hospice M&A Activity Remains Steady In Q2:2018


Home Health And Hospice M&A Activity Remains Steady In Q2:2018

Home health and hospice acquisition activity remained steady in the second quarter of 2018, with one billion-dollar transaction, according to acquisition data from

PR Newswire

NORWALK, Conn., July 24, 2018 /PRNewswire-PRWeb/ -- For two quarters in a row, there have been at least 20 publicly announced acquisitions of home health or hospice companies, a much higher quarterly volume than during most of 2017. In the second quarter of 2018, the number of transactions dipped slightly to 21 acquisitions from 23 in the first quarter. Compared to the year-ago second quarter, the transaction volume soared from just 12 announced deals in that quarter in 2017, according to new data from Only three of the 21 transactions in this year's second quarter disclosed a price, and the total was a large $1.42 billion, largely the result of one significant acquisition.

In one of the largest purchases of a home health and hospice company ever, a joint venture comprising Humana, TPG Capital and Welsh, Carson, Anderson & Stowe purchased Curo Health Services for approximately $1.4 billion. Curo Health had been a portfolio company of private equity firm Thomas H. Lee Partners since December 2014. This is the second joint venture Humana has entered into with TPG and Welsh, Carson to buy a home health and hospice business. At the end of June, the group closed on its purchase of the home health and hospice business of Kindred Healthcare at an estimated value of $3.1 billion. The plan is for Humana to eventually buy out its two private equity partners and take full control of the former Kindred home health and hospice business. The large managed care company believes it can better control costs of its enrollees by owning this business segment.

During the second quarter, private equity firms or portfolio companies of private equity firms accounted for 10 of the 21 acquisitions. There were just four public company buyers during the quarter. Private equity firms Blue Wolf Capital and Kelso & Company joined together for two transactions during the quarter, and LifeCare Holdings announced two deals as well. "Despite reimbursement and regulatory headwinds, investor interest in the home health and hospice sector has heated up. Many believe that hospitals and payers will be driving patients to receive care at home as opposed to post-acute facilities as a way to save on costs," commented Lisa Phillips, editor of The HealthCare M&A Report, which publishes the data. "Obviously, Humana thinks so."        

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the investment research source. For information, or to order the report, call 800-248-1668. Irving Levin Associates is celebrating 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors, and 2017 marked the third year in a row that the firm was recognized by Inc. 5000 as one of the fastest growing media companies in the country. The company was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the healthcare and senior housing M&A markets.

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