Owner Explores $1 Billion Sale of Epic Health Services

Private equity firm Webster Capital is considering a sale of Epic Health Services, a national home health care services and pediatric skilled nursing company, The Wall Street Journal reported. The health care services provider, which is the nation’s largest pediatric focused home care company, could be valued as high as $1 billion, WSJ reported.

Based in Dallas, Texas, Epic Health Services provides adult home care services, including skilled nursing, personal care, behavioral health and adult therapy, in addition to its pediatric services. Founded in 2001, Epic has grown from a single state, singe service line company to a national company with a full continuum of home health care adult and pediatric services over the last 15 years.

Webster Capital has hired Goldman Sachs Group Inc. to explore a sale of the company. Epic currently operates 77 locations in 17 states and reached nearly 43,000 patients in 2015, according to the company’s website.

Since Epic became a portfolio company of Webster Capital in 2010, Epic Health Services rebranded—from Epic Medstaff Home Healthcare—and merged with a number of home health companies. The company has made 15 acquisitions under its ownership with Webster Capital, according to the WSJ. Epic expanded its coverage and offered adult and pediatric services to several states over the last several years, including Massachusetts in 2013, Missouri in 2014 and North Carolina last fall.

Waltham, Massachusetts-based Webster Capital was founded in 2003 and is a middle-market private equity firm that focuses on health care services and consumer branding companies. It has over $600 million of assets under management and is currently investing its third fund.

Epic’s annual rate of revenue has grown about 25% over the past six years, the WSJ reported, reaching as much as $750 million. Webster reportedly acquired Epic in a deal that was valued around $50 million at the time, with the company posting around $60 million in revenue in 2010.

The rumored exploration of a sale comes at the same time that new data revealed home health transactions declined in 2015, despite an overall uptick in deals volume across other health care sectors.

Webster Capital and Epic Health Services declined to speak with Home Health Care News for this story.

Written by Amy Baxter