MTS and Oaktree add to home healthcare portfolio(4)

MTS Health Investors and Oaktree Capital Management have acquired Links2Care to grow the pediatric home healthcare arm of their portfolio company Loving Care Agency.

MTS Health Investors and Oaktree Capital Management have acquired pediatric homecare services provider Links2Care as an add-on for their jointly-owned portfolio company, Loving Care Agency. The merger creates a company with more than $100 million in annual revenues.

Loving Care is a provider of home healthcare services based in New Jersey. MTS and Oaktree first acquired the company in 1996. The company provides carers for the elderly, particularly recipients of the state-funded healthcare scheme Medicare. MTS and Oaktree had always planned to expand the company’s pediatric business, said MTS' senior managing director William Kane.

“Home nursing allows children to come home and stay with their families,” Kane said. “It is also very costly to take care of these highly complex cases within hospitals, and home nursing can provide fairly intensive nursing for as little as 20 percent of hospital costs.”

The acquisition also furthers MTS and Oaktree’s goal of expanding Loving Care geographically, adding central Pennsylvania to its geographic footprint. Loving Care will now be able to leverage Links2Care’s relationships with neo-natal and pediatric care units in the area, Kane said.

Loving Care has expanded to more than 20 branches in Pennsylvania, New Jersey, Indiana and Delaware. Kane said MTS and Oaktree will continue to expand the company within the existing footprint and into adjacent areas, in addition to making further add-on acquisitions.

Many private equity firms are investing in companies that provide healthcare services outside of hospitals, as rising healthcare costs attract more and more criticism. In July The Carlyle Group acquired post-acute health services provider Manor Care for $4.9 billion (€3.5 billion). Behrman Capital also acquired 35 post-acute care facilities this August for $250 million.