Caring People is staying busy on the acquisition front.
In fact, the New York City-based Caring People has completed a handful of strategic deals — with a focus on care management organizations — in the last few months alone. The acquisitions consist of Acappella In Home Care, Aging Care LLC and AMR Care Group, all of which were purchased in separate transactions.
Financial terms of the deals were not disclosed.
Caring People is a portfolio company of private equity firm Silver Oaks Services Partners. The private-duty home care provider operates in New York, New Jersey, Connecticut, Florida and Texas, the latter state recently added to its geographic mix. Across its operations, Caring People serves an average of 1,700 clients per day.
Although Caring People CEO Steven East declined to disclose the financial terms of the deals, he told Home Health Care News that the transactions fell in-line with the current pricing parameters for private-duty home care assets.
“We feel very confident in the investment in those businesses,” East said.
Acappella In Home Care provides home health, hospice, private-duty home care and companionship services throughout 13 Texas counties.
“Texas is a terrific senior care market. It has very strong private-pay demographics,” East said. “At the beginning of 2020, I can’t say I could have predicted we’d be in Texas, but we’re not limited geographically.”
Meanwhile, Aging Care is a care management and non-medical home care company that operates throughout central Connecticut.
New York-based AMR Care Group is a care services company that enables seniors to age in place. The company is partly known for its Cultured Companions program — a service that connects older artists, musicians, professors and others with younger counterparts in their respective fields.
On its end, AMR Care Group had grown at a 97% clip from 2017 through last year. In 2018, the company’s annual revenue checked in at about $2.2 million.
“I don’t think there’s been a magic bullet to our growth,” the company’s founder and CEO Anne Markowitz Recht told HHCN last September. “There’s obviously a huge need for home care services, which everybody knows about. Beyond that, it’s just doing the right thing, expanding our business and giving clients what they want.”
Along with being a great cultural fit, all three companies were attractive acquisition targets because of their owners and infrastructure, according to East.
“We have a back-office support team that can scale and support new offices all over the country,” he said. “With these three acquisitions, what was attractive to us was that they had very like-minded owners, who all stayed on with the organization in different roles. We felt that we could continue working with them and growing what they built.”
Acappella In Home Care founder Jo Alch, for example, has moved into the role of ambassador of brand development for Caring People.
The acquisitions also allowed Caring People to expand the company’s service lines.
“[Aging Care and AMR Care Group] had a core competency in providing care management services,” East said. “That’s a revenue vertical and a service line that we’re very interested in adding to our existing platform. Those acquisitions were strategic in terms of getting that talent.”
In addition to the three acquisitions, Caring People recently opened a new branch in New Haven, Connecticut, last month.
“We set up that branch because we knew there was a great caregiver population in that area,” East said. “We felt that having an office in that location would give us some better positioning for recruitment.”
Looking ahead, East says Caring People will continue to take a multi-pronged approach to growth.
“Acquisitions are definitely part of [our growth strategy], especially as we look at new and existing markets,” he said. “Adding new service lines to our existing business is also part of it, as well as de novo branches to service clients. We see it as a mix, but acquisitions are definitely an important component [of our growth strategy] — at least 50% or 60%.”