Emerging home healthcare provider Choice Health at Home acquires more Texas assets

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An emerging home care provider is back on the M&A trail for the first time in 2022.

Choice Health at Home, based in Tyler, Texas, announced the acquisition of the Texas assets of Abiding Home Health, which operates in Dallas and San Antonio, Texas.

Choice had a busy 2021 – which included 9 deals – after securing backing from Trive Capital and Coltala Holdings. Founded in 2008, the company was not present in the home healthcare market until 2012. Last year everything changed, with private equity players considering the company as an important and suitable regional player. to growth.

In January, the supplier secured a $190 million credit facility. It already operates dozens of home health centers in Texas and Oklahoma, but intends to expand further into the southwestern part of the United States in the future.

“Our partnership with Trive Capital and Coltala Holdings, coupled with the recent credit facility provided by Oxford Finance, AB Private Credit and Maranon Capital, has positioned Choice for growth. We will continue to seek quality companies in the areas of home health, private services and palliative care. ”

For now, he is building strong bases in Texas and Oklahoma. But in due course, it wants to expand from Louisiana to Southern California, its CEO, David Jackson, told Home Health Care News.

In addition to home health care, Choice also offers palliative care, private child care and rehabilitation services.

“These agencies and employees will strengthen our ability to serve one of the fastest growing regions in the country,” Jackson said in a statement. “The Texas Hill Country in particular has seen a substantial increase in population before and throughout the pandemic. The region is in dire need of both quality home health and healthcare professionals.

In addition to this expansion, Choice wants to have the ability to provide its four service lines to patients in the areas it serves.

The Abiding transaction will allow the company to grow organically in central Texas in particular, an area that Choice has recognized as important.

“While growing market share is very attractive, a key driver for Choice is how Abiding allows us to organically grow throughout the Central Texas Corridor,” said Trina Lanier, President of Choice. and co-founder of the palliative care and home care service lines. in a report. “We anticipate that the transaction will allow us to develop additional home health services territories moving into both upstate and west Texas.”

As private equity has increasingly become involved in home care spaces, the opportunities have – to some extent – ​​dried up.

There is less and less chance to invest in companies like Choice that have a regional footprint, but also the ability to become a more national player. “We were definitely looking, but we weren’t optimistic that we could find the right one,” Ralph Manning, co-founder and CEO of Coltala Holdings, told HHCN last year. “And it’s really because the market has become so competitive. Finding an entry point, with whatever kind of momentum and scale – that you can afford – is really hard. I’m not going to say we gave up, but we just had hope.

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