Bain Capital Private Equity has acquired paediatric nursing provider Epic Health Services from Webster Capital for around $950 million, according to a source with knowledge of the deal.
“Through our experience investing across the healthcare value chain, we have seen that home healthcare is mission critical to yielding better healthcare outcomes, and we are excited to work with the Epic Health Services team to extend the company’s comprehensive value proposition to patients and families,” said Chris Gordon, a managing director at Bain Capital Private Equity.
The sale represents around a 10x multiple for Webster, which acquired Epic Medstaff Home Healthcare in 2010 for $42 million, according to the source. The person said Webster grew EBITDA from $6 million at the time of acquisition to around $80m this year. Half of the growth came through acquisitions, half was organic. The sale followed an auction process initiated in September.
The firm backed Epic from its second fund, a $205 million vehicle, and embarked on a build-up strategy which saw it acquire more than fifteen businesses, most recently Baltimore-based Care Resources. That deal and a number of other add-ons was funded from Webster’s 2014 $400 million Fund III.
Webster expanded Epic’s reach into 21 states and broadened its service offerings beyond paediatric private duty nursing to include therapy, enteral nutrition and autism services, among others.
Epic Health Services will continue to be operated by its current management team under president and chief executive Chris Roussos.
Webster is half way through investing Fund III and currently holds five healthcare services portfolio companies.
Bain has struck a number of healthcare deals this year, most recently backing Navicure, a provider of cloud-based claims management and patient payment for physicians and hospitals across the United States.
The firm is also raising its first dedicated life sciences fund, a recent Securities and Exchange Commission filing shows.
Barclays, BMO Capital Markets, and RBC Capital Markets provided debt for the Epic deal.