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Centre Partners Makes Nursing Investment
Mid-market PE shop strikes deal for significant stake in Californian Covenant Care.
July 22, 2008
Centre Partners, the New York-based middle market private equity firm, struck a deal with Covenant Care, the Californian nursing facility operator, for what a joint statement from the entities Tuesday called “a significant stake.”
Centre Partners will continue to see the same Covenant Care executives in their roles, the statement said.
According to an industry report earlier this year cited by Centre Partners, the industry is forecasted to see a growth in demand thanks to an increasing number of elderly residents in the US. Revenues in the nursing care area for this year are anticipated to be about $104 billion, the statement said.
The deal represents Centre Partners’ second healthcare investment in as many years; the firm in 2006 struck a deal to acquire and integrate more than 100 dialysis clinics from Fresenius Medical Care and Renal Care Group for $550 million; that integration was made into Centre Partners’ DSI Holdings portfolio company.
Covenant Care, founded in 1994 by long-term care industry professionals has grown to include over 5,000 healthcare professionals which work in 43 long-term care communities, 3 residential care facilities, as well as institutional pharmacies.
“[Centre Partners] financial support and expertise should enable us to accelerate our growth plans for the business,” said Covenant Care chief executive Bob Levin. “This transaction is a clear endorsement of the strength of our dedicated team of healthcare professionals who are committed to providing the highest level quality of care to our residents across the country.”
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