Arcapita sells healthcare company for $395m

The private equity arm of Bahrain-based Arcapita Bank purchased TLC Health Care Services nearly four years ago in a $189 million transaction.

Arcapita, the Atlanta-based private equity arm of Bahrain’s Arcapita Bank, has agreed to sell TLC Health Care Services to publicly traded healthcare company Amedisys for roughly $395 million (€270 million). The deal is expected to close in approximately 30 to 45 days, according to a spokeswoman who declined to give further transaction details.

In April 2004, Arcapita, formerly known as Crescent Capital, purchased New York-based home healthcare provider TLC in US Bankruptcy Court for $188.5 million, including the assumption of $40 million in debt. The deal was part of an auction process that involved 17 rounds of bidding.

In the auction, Arcapita bested offers from US mid-market buyout firm Charterhouse Group, Detroit private equity firm Questor Management and US healthcare services company Patient Care. The initial bid was a $122 million stalking-horse offer from Charterhouse.

TLC, which provides home nursing care, filed for Chapter 11 on 11 November 2002. Former TLC parent company Med Diversified also filed for bankruptcy in a separate petition.

This is Arcapita’s eleventh exit from its US corporate portfolio and the fourth exit from the firm’s healthcare investment practice.

Arcapita changed its name from Crescent Capital Investments on 15 March 2005. The firm is the private equity arm of Bahrain-based investment bank Arcapita Bank. Arcapita Bank, which operates according to Islamic law, also changed its name on 15 March from First Islamic Bank.