Sep 29, 2020
One Equity Partners Agrees to Sell Simplura Health Group
Transaction Reflects Firm’s Expertise in Building Businesses Through Transformational Acquisitions in Strategic and Growing Markets
NEW YORK – September 29, 2020 –
One Equity Partners (“OEP”), a middle market private equity firm, today announced that it has entered into a definitive agreement to sell Simplura Health Group (“Simplura” or “the Company”), a provider of high‐quality home care services for the elderly and disabled, to Providence Service Corporation (Nasdaq: PRSC). Through its subsidiary, Logisticare, Providence Service Corporation is the nation’s largest manager of non‐emergency medical
The sale of Simplura will result in the successful realization of OEP’s 2016 investment in the market‐leading provider of non‐medical home care services. Headquartered in Valley Stream, N.Y., the Company employs over 15,000 professionals, including 14,300 direct caregivers from a network of 57 locations in seven states – New York, Pennsylvania, Massachusetts, Connecticut, West Virginia, Florida and New Jersey.
“We’re proud that our partnership with Simplura’s President and CEO David Middleton and his results‐driven team has built a leading national brand in home care with a strong focus on providing best‐in‐class care,” said Greg Belinfanti, Senior Managing Director at One Equity Partners. “We’re pleased to transition ownership in Simplura’s highly scalable platform in a transaction that will allow us to realize significant value for our investors and position the Company for the next chapter of its growth.”
Under OEP’s ownership, Simplura executed eight add‐on acquisitions that grew the Company to 57 locations across seven states, adding operations in Massachusetts, Pennsylvania, Connecticut and West Virginia, which are all attractive Medicaid Home and Community‐Based Services (HCBS) markets. During this period, Simplura grew revenue at a CAGR of 14 percent. “Our partnership with OEP enabled Simplura to accelerate growth through acquisitions that created geographic density and expansion into fast‐growing markets, while improving alignment with state agencies and Managed Care Organizations. Importantly, throughout this growth we have maintained our reputation as a trusted home care services provider to high‐cost, medically fragile patient populations,” said Middleton. “We are excited about the opportunities ahead for our well‐trained caregivers and associates who will join an organization that provides complementary services for millions of aging seniors and disabled adults.”
In addition to driving Simplura’s growth, OEP invested in operational improvements and technology infrastructure to significantly improve the Company’s back‐office homecare management, payroll, finance and administrative, education and training systems and processes.
The demand for home care services is continuing to increase as more states seek to transition seniors and disabled patients out of long‐term care facilities and into home and community‐based settings where cost of care, health outcomes and patient satisfaction are superior. “Simplura’s scale, robust technology infrastructure and staff of devoted care givers have made it an exceptionally attractive partner for Medicaid managed care and Medicare Advantage programs seeking value‐based care,” said Brad Coppens, Managing Director at One Equity Partners. “We’re certain that the patients and managed care partners of Providence Services Corporation will benefit from the tireless dedication of the entire Simplura team.”
Guggenheim Securities LLC is serving as exclusive financial advisor to Simplura and Kirkland & Ellis LLP is serving as its legal advisor.
The transaction is expected to close in the fourth quarter of 2020, pending regulatory approvals and customary closing conditions.
About One Equity Partners
OEP is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market‐leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long‐term value for its partners. Since 2001, the firm has completed more than 180 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
About Simplura Health Group
Simplura Health Group’s origins date back to 1955 when the founding organization – All Metro Health Care – began providing services in Long Island, NY. Since then, All Metro has expanded across the state of New York and acquired operations in Pennsylvania, Massachusetts, Florida, New Jersey, West Virginia and Connecticut to become one of the largest and most respected home care companies in the country. In 2018, these operations were brought together under the brand Simplura. Simplura, which is derived from Latin for “Better Together,” recognizes the deep engagement and shared identity that is common across the family of home care companies that make up Simplura Health Group. Simplura is one of the leading providers of home care services including assistance with activities of daily living and complex home nursing services. For more information, please visit www.simplura.com.
Press contact for One Equity Partners:
Kelly Holman Stanton