NEW YORK, NY, CORAL GABLES, FL and DALLAS, TX – May 23, 2011 – New MainStream Capital (“NMS”) and MBF Healthcare Partners, L.P. (“MBF”), today announced the merger of SunCrest Healthcare (“SunCrest”) and OMNI Home Care (“OMNI”), a portfolio company of NMS and MBF. NMS and MBF will continue to share joint ownership of the combined companies.
The combination of OMNI and SunCrest creates one of the largest post-acute care providers of home health services in the Southeastern United States, with an expanded geographical footprint and highly diversified service offerings. The combined company will have revenues approaching $200 million, and will operate over 75 branches across 10 states, employing more than 3,000 healthcare professionals and also providing private duty outpatient rehabilitation and hospice services in select markets.
“We couldn’t be happier that our organizations are combining forces, especially since our patient care goals are so complementary,” said John W. (Wally) Dant III, President and Chief Executive Officer of SunCrest Healthcare, Inc. “We’re creating a stronger company that will continue to provide quality, compassionate services to our patients and their families in their homes. We recognize the valuable relationship with our employees, referral sources and the growing list of communities we serve. These values are deeply rooted in each of our companies, so this merger will be beneficial on so many levels,” he explained.
Martin E. Chavez, Managing Partner, New MainStream Capital added, “We at New MainStream Capital are excited to help bring together two great healthcare services companies – SunCrest and OMNI. This opportunity fits well within our portfolio of investments as we look to work with well run companies with proven success records that provide critical services to the aging US population.”
Jorge Rico, Managing Director, MBF Healthcare Partners added, “We have been searching for a quality provider and company that could fill the geography gap between OMNI’s successful operations in Florida and Pennsylvania and the addition of SunCrest has fulfilled that requirement. We are very excited and eager to work with Wally as we execute on our vision to become the largest post-acute care provider of home health services in the United States.”
Harpeth Capital acted as financial advisor to SunCrest. Greenberg Traurig, P.A. served as legal counsel on the transaction to OMNI, and Waller Lansden Dortch & Davis, LLP served as legal counsel to SunCrest.
Financing for the transaction was joint lead arranged and underwritten by affiliates of GE Capital Corporation, SunTrust Robinson Humphrey and BMO Capital Markets.
About New MainStream Capital:
New MainStream Capital (“NMS”) is a New York and Dallas-based private investment firm specializing in strategic equity investments and leveraged buyouts of middle market companies. NMS was formed by two principals from Goldman Sachs Merchant Banking Division and the partners of Haas Wheat & Partners in connection with the acquisition of a group of portfolio companies from Goldman Sachs and the establishment of NMS Fund, LP. For more information, please visit nms-capital.com.
About MBF Healthcare Partners, L.P.:
MBF Healthcare Partners, L.P. (“MBF”) is an industry-focused private equity firm dedicated to the healthcare sector that invests in leveraged buyouts, growth capital investments and recapitalizations (including underperformers, turnarounds, and special situations). The Principals of MBF have substantial operating experience in healthcare and have held senior management positions in both private and publicly-traded healthcare companies. MBF principals have managed and helped build some of the nation’s most innovative and successful healthcare companies. The firm is headquartered in Coral Gables, Florida. For more information, please visit www.mbfhp.com.
NMS: Martin Chavez, Managing Partner- 214-871-8350; email@example.com
Wyche Walton, Partner- 214-871-8303; firstname.lastname@example.org
MBF: Jorge Rico, Managing Director- 305-476-5160; email@example.com
Luis Gonzalez, Director- 305-476-5175; firstname.lastname@example.org