Bain Capital makes bolt-on acquisition in pediatric market

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Wednesday, January 18, 2017

ATLANTA – Bain Capital Private Equity plans to buy PSA Healthcare, combining it with another recent purchase, Epic Health Services.

“The combination of these two companies promises to create a unique and highly differentiated pediatric care platform that offers the highest quality care and the best clinical outcomes for our patients,” stated Rod Windley, chairman of PSA. “Together, we have the opportunity to become the fastest growing and most efficient provider network of home care to medically fragile children in the United States.”

Per the agreement, the current equity holders of PSA Healthcare, including its senior management team and J.H. Whitney Capital Partners, its current majority owner, have agreed to roll over their current ownership interests into the newly formed affiliate.

The combined company will be led by Windley as executive chairman; current PSA CEO Tony Strange as CEO; and several members of Epic Health’s senior management team.

For Dallas-based Epic Health, the deal extends its geographic reach. PSA Healthcare, based here, has more than 75 locations in 16 states, including Florida, Georgia, Pennsylvania, Colorado, Texas and Louisiana.

Financial terms of the deal weren’t disclosed.

Epic Health announced it would be acquired by Bain Capital in December.

Both the PSA Healthcare and Epic Health deals are expected to close in the first quarter of this year.