Centre Partners does second US nursing home chain deal

The Los Angeles-based private equity firm builds on its knowledge of the renal healthcare system with the acquisition of long-term care company, Covenant Care.

Centre Partners has made its second acquisition in the US healthcare market acquiring nursing home company Covenant Care for an undisclosed sum.

The Los Angeles-based mid-market private equity firm bought Covenant in partnership with the company’s management, which according to a statement from Centre Partners will remain in place. Covenant operates 43 nursing homes and three residential care facilities in seven US states providing 24-hour a day long-term rehabilitative care.

The deal follows Centre’s $550 million (€347 million) purchase of 100 dialysis clinics from Fresenius Medical Care and Renal Care Group in 2006. The transaction was made through its portfolio company, DSI Holdings, the third largest for-profit provider of outpatient kidney dialysis services in the US.

In the statement Centre senior partner Bob Bergmann said the deal would allow Covenant, based in Aliso Viejo, California, to expand its facilities.

As well as healthcare, Centre Partners also targets the industrial products and services, consumer, energy, media, restaurants, retail and aviation services sectors. It is currently investing its fifth fund, which has roughly $880 million in committed capital. According to the firm’s website, Centre Partners invests between $15 million and $85 million in portfolio companies.