Investment Approach

Case Study : Critical Homecare Solutions, Inc.

Recognizing the need to provide infusion therapy services in a lower cost environment while elevating the level of service and quality of care in an otherwise fragmented market, Kohlberg’s discipline and execution expertise in identifying, acquiring and integrating disparate assets helped me build a business of scale with a cohesive strategy. "

Robert A. Cucuel, Jr. - Chief Executive Officer
Company Description:

During Kohlberg’s investment, Critical Homecare Solutions, Inc. ("CHS") became a leading provider of home infusion therapy administered to patients suffering from a wide range of acute and chronic health conditions, including infections, dehydration, cancer, pain and nutritional deficiencies. Infusion therapy involves the administration of medications, nutrients, or other solutions intravenously, subcutaneously, enterally or epidurally. Therapies are compounded in a sterile clean room environment, dispensed by a specially-trained pharmacist and delivered to the patient’s home.  The CHS platform was the result of the simultaneous combination of Specialty Pharma, Inc. and New England Home Therapies, Inc. 


Compelling Situation:

  • Leading regional platform for acquisition
  • Favorable industry dynamics characterized by (i) beneficial cost comparison to the hospital setting, (ii) growing, aging patient demographic and (iii) increase in infusible therapies
  • Highly fragmented sector, with deep and actionable acquisition pipeline developed by Kohlberg during due diligence
  • Previous success executing a consolidation thesis in the homecare sector with Kohlberg Operating Partner Robert Cucuel


    Kohlberg Actions:

    • Completed 9 add-on acquisitions, increasing revenue scale 5x
    • Realized significant revenue and cost synergies in acquired businesses
    • Through integrated platform, leveraged scale to expand market share and enhance organic growth profile


      Results

      • Through execution of acquisition thesis, became the largest independent provider in the industry
      • Grew organic EBITDA at greater than 10% CAGR
      • Sold in 2010 to a strategic buyer at attractive multiple




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