Health system Ascension Health and private equity firm TowerBrook Capital Partners announced plans to acquire Nashville, Tennessee-based Compassus. While Compassus is known for its hospice services, the post-acute care company also provides palliative and home health care services; it has more than 125 locations in 30 states across the U.S.
As part of the deal, TowerBrook Capital Partners and Ascension Health will split ownership of Compassus 50/50, with each holding an equal stake. The agreement values Compassus at more than $1 billion. Additionally, former investors Formation Capital and Audax Private Equity will no longer hold stakes in Compassus after the deal officially closes. Barclays, Merrill Lynch, Capital One, Jefferies, and Houlihan Lokey are providing financing for the deal.
TowerBrook Capital Partners’ value creation strategy aims to transform the capabilities and the prospects of the businesses invested in. TowerBrook invests both through Private Equity Funds and through Structured Opportunities Funds, allowing for access to a range of opportunities throughout the cycle. The overall objective is to deliver superior, risk-adjusted returns to investors on a consistent and responsible basis. This requires a commitment to fundamental value and a highly disciplined approach to the assessment and management of the investments.
Ascension is a faith-based healthcare organization dedicated to transformation through innovation across the continuum of care. As one of the leading non-profit and Catholic health systems in the U.S., Ascension is committed to delivering compassionate, personalized care to all, with special attention to persons living in poverty and those most vulnerable. The national health system operates more than 2,600 sites of care while providing a variety of services including physician practice management, venture capital investing, investment management, biomedical engineering, facilities management, clinical care management, information services, risk management, and contracting through Ascension’s own group purchasing organization.
Compassus is a nationwide network of community-based post-acute care services primarily focused on hospice, palliative, and home health care. The company was founded in 2006, but its roots in hospice reach back to 1979. Today, the company operates more than 165 hospice, palliative and home health programs in 31 states across the U.S. The mission of Compassus is to honor life and offer hope to individuals facing serious or terminal illness by supporting them with a common culture focused on three core values: Compassion, Integrity, and Excellence.
This was reported by Home Health Care News on October 2, 2019.
Contact information: TowerBrook Capital Partners, 65 East 55th Street, New York, New York 10022; 212-699-2200; Website: www.towerbrook.com
Contact information: Ascension Headquarters, 101 South Hanley, Road Suite 450, St. Louis, Missouri 63105; 314-733-8000; https://ascension.org