Secondary Buyout • Healthcare Services

Audax Private Equity Acquires Compassus

On December 12, 2014, private equity firm Audax Private Equity acquired healthcare services company Compassus from Cressey & Company

Acquisition Context
  • This is Audax Private Equity’s 6th transaction in the Healthcare Services sector.
  • This is Audax Private Equity’s 73rd transaction in the United States.
  • This is Audax Private Equity’s 3rd transaction in Tennessee.
Investment Fate
  • Compassus was sold to a consortium of financial buyers in 2019.

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M&A Deal Summary

Date December 12, 2014
Target Compassus
Sector Healthcare Services
Buyer(s) Audax Private Equity
Sellers(s) Cressey & Company
Deal Type Secondary Buyout

Target Company

Compassus

Brentwood, Tennessee, United States
Compassus is an independent provider of hospice services in the United States. Compassus cares for its patients through over 135 locations in 29 states across the U.S., serving them wherever they call home (primarily homes, nursing homes, and assisted living facilities.) Compassus plays a key part in patients’ lives as they transition from acute to non-curative, post-acute care settings, and seeks to provide timely quality care, pain and symptom management, and emotional support through leveraging interdisciplinary care teams and data-driven insights. Compassus was founded in 1979 and is based in Brentwood, Tennessee.
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Buyer Overview 1

Buyer

Audax Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Private Equity is a private equity firm focused on acquiring control positions in a variety of mid to large North American headquartered companies. The Firm segments its activities into lower middle-market and larger scale investing. Within its larger group, Audax targets profitable businesses valued up to $800 million and within its lower middle-market group, the Firm seeks companies valued up to $125 million. Sectors of interest include business services, consumer products/services, financial services, healthcare services, industrial services, software, and technology. Audax has a special interest in businesses that can benefit from a buy and build investment strategy for growth. Audax Private Equity was formed in 1999 and is based in Boston, Massachusetts.


Deal Context for Buyer #
Overall 75 of 170
Sector: Healthcare Services 6 of 18
Type: Secondary Buyout 27 of 73
State: Tennessee 3 of 3
Country: United States 73 of 161
Year: 2014 11 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-20 Checkers Safety

Broomfield, Colorado, United States

Checkers Safety is a provider of branded industrial safety products dedicated to vehicular safety, asset protection, and workplace safety. Checkers Safety was founded in 1987 and is based in Broomfield, Colorado.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-12-16 Distribution International

Houston, Texas, United States

Distribution International (DI) is a distributor of thermal and acoustical insulation and related supplies for maintenance and repair operations in the United States. DI serves power generation facilities, petrochemical and industrial refinery plants, governmental and institutional buildings, military and commercial vessels and offshore rigs as well as other facilities and industries. Distribution International was founded in 1986 and is based in Houston, Texas.

Sell -

Seller Profile 1

SELLER

Cressey & Company

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
PE ASSETS 1.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Cressey & Company LP is a specialist private equity investment firm focused on buy-and-build opportunities in the healthcare sector. The firm invests in the range of $10 - $100 million and EBITA of at least $5 million. The firm specific areas of interest include hospitals, homecare, outpatient services, and specialty distribution. Types of transaction include buyout, growth and recapitalization. It also seeks controlling interest. Cressey & Company has offices in Chicago, Illinois and Nashville, Tennessee.


Deal Context for Seller #
Overall 13 of 22
Sector: Healthcare Services 8 of 13
Type: Secondary Buyout 3 of 7
State: Tennessee 2 of 4
Country: United States 12 of 21
Year: 2014 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-24 Encompass Home Health

Dallas, Texas, United States

Encompass Home Health, Inc. (fka Advanced Homecare Management) is a provider of Medicare home nursing services in the large and highly fragmented Texas, Oklahoma and New Mexico markets.

Sell $750M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-02 Dental Services Group

St. Petersburg, Florida, United States

Dental Services Group is an operator of a full-service laboratory network with over 40 dental laboratories that offers dental prosthetic solutions, including fixed, removable, implant, orthodontic and sleep dentistry products. Dental Services Group was founded in 1989 and is based in St. Petersburg, Florida.

Buy -