CarePoint likes Texas market

Sunday, February 27, 2011

CINCINNATI - Home infusion provider CarePoint Partners continues to build its network, acquiring Houston-based ivA Lifetec, it announced Jan. 18.

"Texas is a focus for them," said Jonathan Sadock, partner and CEO of Paragon Ventures, a Philadelphia-based M&A firm. "They are a good company to keep an eye on. I think you are going to see them perform well."

CarePoint is backed by Chicago-based Waud Capital Partners, a private equity firm. It formed in 2007 to acquire and develop a network of home infusion and specialty pharmacies.

Since then, CarePoint has acquired 10 infusion providers, including Dallas-based Allied Preferred Care in October 2010 and Praxair Home Infusion of Pennsylvania in December 2009. Other acquisitions have included regional providers in Ohio, Florida and West Virginia.

"They are pretty selective," said Bob Leonard, an analyst with The Braff Group, a Pittsburgh-based M&A firm. "They are not in a rush to buy."

Home infusion continues to remain an attractive market for buyers, according to industry watchers: It's a growing market with promising drugs in the development pipeline, and it isn't included in competitive bidding.

But while there have been some record-setting deals in recent years--including Walgreens' acquisition of Option Care for $850 million and Apria's acquisition of Coram for $250 million, both in 2007--most deals in the home infusion market these days involve much smaller companies, said Sadock.

"There's plenty of activity and opportunity for continued acquisitions of those mid-sized companies, those with between $10 million and $30 million in revenue," he said.

Terms of the deal were not disclosed, and CarePoint did not respond to requests for comment.

ivA Lifetec will continue to operate under its own name and maintain its current staff.