Private Equity News & Analysis

MBF Healthcare SPAC again changes terms on Kohlberg exit

Blank cheque company MBF Healthcare Acquisition will pay $12m less for Kohlberg & Company-owned Critical Homecare Solutions, just a month after cutting the initial price tag from $534m to $479m. The SPAC arranged a new financing scheme last month.

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A special purpose acquisition company sponsored by private equity firm MBF Healthcare Partners has again cut the amount it will pay for Kohlberg & Company portfolio company Critical Homecare Solutions.

In filings with the Securities and Exchange Commission released last week, MBF Healthcare Acquisition said that the cash amount it would pay to Critical Homecare would drop by $12 million (€8 million).

In February, the SPAC agreed to acquire Critical Homecare in a deal that valued the home infusion therapy

Critical Homecare:

Home IV source

provider at $534 million. In August, that value was slashed to $467 million after a financing offer from investment bank Jefferies Finance expired before the deal’s consummation.

MBF Healthcare has since arranged a new financing arrangement with Jefferies and healthcare credit specialist CIT Healthcare. In a public statement, the SPAC said it expects the deal to be approved by shareholders by October.

Florida-based MBF Healthcare, which currently invests a $225 million fund, could not be reached for comment. The firm sponsored the SPAC in April of last year, raising $150 million in an initial public offering.

Pennsylvania-based Critical Homecare provides intravenous infusion therapy services to treat a variety of health conditions, including immune deficiencies, bacterial infections, and gastrointestinal disorders.

San Francisco-based Kohlberg & Company acquired Critical Homecare in 2006 from the firm’s fifth fund for an unspecified amount.