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Water Street Buys CareCentrix Stake
The Chicago PE firm will control 69% of CareCentrix business, in a $147 million acquisition.
August 21, 2008
Water Street Healthcare Partners, a Chicago, Illinois-based private equity firm, will acquire a controlling stake in the ancillary care benefit management business of Gentiva Health Services. Water Street will take 69% of Gentiva’s CareCentrix business line for about $147 million.
Gentiva Health Services, Inc. is a home health care provider in Melville, New York.
Water Street spun off from One Equity Partners in 2005, the private equity arm of JPMorgan. The buyout firm focuses solely on healthcare acquisitions, and was the driving force in the June merger of Tri-anim and Bound Tree Medical.
The CareCentrix unit employs about 400 and delivers home nursing and home medical equipment to over 10 million individuals. The business line was founded in 1996.
Gentiva’s chairman and chief executive officer Ron Malone said, “By separating CareCentrix at this juncture, we are both unlocking value for shareholders today and preserving the potential to deliver future value as Water Street, an accomplished healthcare investor, provides the expertise, resources and relationships to help CareCentrix maximize its potential.”
Tom Boelsen, senior vice president of CareCentrix, said, “With Water Street’s support, we will gain access to additional resources, strengthen our technology and infrastructure, and leverage marketplace relationships. All of this will further improve our ability to serve customers, our provider ancillary care network and ultimately our patients.”
CareCentrix’s present management team will remain on board, according to a company press release.
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