M&A Deal Summary

Encompass Health Acquires Encompass Home Health

On November 24, 2014, Encompass Health acquired healthcare services company Encompass Home Health from Cressey for 750M USD

Acquisition Highlights
  • This is Encompass Health’s 2nd transaction in the Healthcare Services sector.
  • This is Encompass Health’s largest (disclosed) transaction.
  • This is Encompass Health’s 2nd transaction in the United States.
  • This is Encompass Health’s 1st transaction in Texas.

M&A Deal Summary

Date 2014-11-24
Target Encompass Home Health
Sector Healthcare Services
Buyer(s) Encompass Health
Sellers(s) Cressey
Deal Type Add-on Acquisition
Deal Value 750M USD
Advisor(s) Harris Williams & Co. (Financial)
Ropes & Gray (Legal)

Target

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.

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Buyer(S) 1

Buyer

Encompass Health

Birmingham, Alabama, United States

Category Company
Founded 1983
Sector Healthcare Services
Employees27,209
Revenue 4.8B USD (2023)
DESCRIPTION
Entrance to HealthSouth's corporate headquarters in Birmingham, Alabama.
Entrance to HealthSouth's corporate headquarters in Birmingham, Alabama.

Encompass Health is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies. Encompass Health was incorporated in 1983 and is headquartered in Birmingham, Alabama.


DEAL STATS #
Overall 2 of 9
Sector (Healthcare Services) 2 of 9
Type (Add-on Acquisition) 2 of 7
State (Texas) 1 of 2
Country (United States) 2 of 9
Year (2014) 1 of 1
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-02 Surgical Care Affiliates

Deerfield, Illinois, United States

Surgical Care Affiliates, Inc. is a developser, owns and operator of an outpatient surgical care centers and a health maintenance organization.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-04 Cardinal Hill Rehabilitation Hospital

Lexington, Kentucky, United States

Cardinal Hill Rehabilitation Hospital is comprised of 158 licensed inpatient rehabilitation beds and 74 licensed skilled nursing beds, will continue to provide high-quality inpatient rehabilitation, skilled nursing, outpatient rehabilitation and home health services.

Buy -

Seller(S) 1

SELLER

Cressey

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 STATS #
Overall 12 of 22
Sector (Healthcare Services) 7 of 13
Type (Add-on Acquisition) 7 of 10
State (Texas) 3 of 4
Country (United States) 11 of 21
Year (2014) 2 of 3
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-26 Strategic Healthcare Programs

Santa Barbara, California, United States

Strategic Healthcare Programs LLC is a provider of software and informatics solutions to the post-acute healthcare market.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-12-12 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.

Sell -