Thomas H. Lee Partners LP has purchased hospice provider Curo Health Services LLC in a deal valued around $730 million, according to a source familiar with the matter. Curo ‘which GTCR LLC put on the auction block this summer’ was purchased after a competitive and long sales process, the source explained. The Deal reported last month that the auction had three finalists, with two of the final bidders being primarily private equity-focused. One of the final bidders had a strategic focus. Over the past two weeks, three industry bankers familiar with the matter noted that Boston-based Thomas H. Lee had exclusivity in negotiations for the hospice provider. At the time, one banker noted that he would be surprised if the company snagged 10 times Ebitda, valuing a deal at around $750 million, though he noted Curo was a nice-sized asset. In June, Mooresville, N.C.-based Curo raised a $485 million loan package to finance its $230 million purchase of Southern Care Holdings Inc. The rest of the package was earmarked for debt refinancing. At the time, Moody’s Investors Service Inc. said that its debt-to-Ebitda ratio was at about 6 times, suggesting an Ebitda of about $80 million. The source noted that the deal had taken a bit longer than usual. The source said it is expected to be formally announced early January. The deal will be financed with a syndicated senior credit facility and second-lien debt.
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