Epic Merges with PSA to Create Pediatric Home Health Powerhouse

Epic Health Services, the nation’s largest pediatric-focused home care company, is merging with PSA Healthcare to achieve even greater scale. The new entity will be an affiliate of Bain Capital Private Equity, which acquired Epic in late 2016.

Epic, based in Dallas, also provides adult home care. Its footprint prior to the PSA merger spanned 21 states. PSA Healthcare, based in Atlanta, provides pediatric and adult home care and has more than 75 locations in 16 states.

Financial terms of the transactions were not disclosed, though the PSA acquisition could be in the neighborhood of $300 million, a source told Home Health Care News on the condition of anonymity.


Epic’s acquisition by Bain in December 2016 was about $950 million, the source told HHCN. The provider’s former owner, private equity firm Webster Capital, was floating the idea of the sale earlier last year, when it was estimated the purchase price could reach as high as $1 billion.

Bain Capital and Epic Health Services had not replied to Home Health Care News’ requests for comment as of press time.

The new entity will be led by current PSA Chairman Rod Windley, who will serve as executive chairman, and current PSA CEO Tony Strange, who will serve as CEO. Several members of the current Epic Health services management team will also be on the leadership team of the combined companies.


“This is an ideal match that will extend our geographic reach and enhance our unique pediatric care continuum and its services of private duty skilled nursing, therapy, development services and home medical solutions, including enternal nutrition, respiratory, pharmacy and medical supplies,” Rod Windley, chairman of PSA, said in a press release.

Current equity holders of PSA agreed to roll over their current ownership interests into the newly-formed affiliate. PSA’s current majority owner is New Canaan, Connecticut-based J.H. Whitney Capital Partners, one of the first U.S. private equity firms.

“We are excited to work with both Epic Health Services and PSA to extend the combined company’s comprehensive value proposition to patients and families and to continue their strong track record of growth and delivery of cost effective care,” Chris Gordon, a managing director at Bain Capital Private Equity, said in a press release. “Through our experience investing across the healthcare value chain, we know that home health care is absolutely critical to achieving better health care outcomes in a cost effective manner.”

The transactions are expected to close at the end of the first quarter of 2017, subject to regulatory approvals and closing conditions.

Edge Healthcare Partners served as PSA’s financial advisor, and Greenberg Taurig LLP served as its legal advisor. Detest LP served as legal advisor to J.H. Whitney. Kirkland & Ellis LLP served as legal advisor to Bain Capital Private Equity.

Written by Amy Baxter

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