Wellspring Capital Management (“Wellspring”), a New York‐based private equity firm, today announced that it has closed the acquisition of HealthPRO Heritage, a leading provider of contract therapy services across the post‐acute continuum. HealthPRO Heritage provides therapy services under the HealthPRO Heritage, HealthPRO Heritage at Home, HealthPRO Pediatrics and Alternatives ABA brands. Financial terms of the transaction were not disclosed.
Founded in 2007 and headquartered in Hunt Valley, Maryland, HealthPRO Heritage is one of the nation’s leading and most progressive providers of therapy and clinical solutions for skilled nursing, senior living, and home health care providers. The company also provides school‐based therapy, early intervention, and ABA services for children with special needs. With over 12,500 professionals nationally, HealthPRO Heritage is committed to partnering with leading post‐acute providers to deliver therapy services in 42 states.
Alex Carles, a Managing Partner at Wellspring, said, “Our investment in HealthPRO Heritage is an exciting opportunity to build on Wellspring’s successful track record in the healthcare sector. HealthPRO Heritage has successfully navigated various reimbursement and operating challenges that have impacted it’s industry in recent years, including most recently the transition to the new PDPM & PDGM payment models and the current COVID crisis.”
Naishadh Lalwani, a Partner at Wellspring, added, “HealthPRO Heritage has a long history of using evidence‐based outcomes to drive clinical excellence, compliance and market‐share gains for its customers. We are very excited to partner with the HealthPRO Heritage management team, led by John Heller, to support HealthPRO Heritage through its next phase of growth and innovation.”
John Heller, CEO of HealthPRO Heritage, added, “We are very pleased that Wellspring has invested in HealthPRO Heritage given the firm’s history of building successful businesses in the healthcare sector and helping companies accelerate their growth plans. We are extremely proud of what our management team has accomplished and to have attracted a partner like Wellspring. We will continue to pursue our mission of providing the highest quality of care to our patients, being a true solutions‐oriented partner to our customers, and providing an environment where our professional therapists can exercise the clinical judgement they are trained for.”
Current management retains a significant equity position and will remain in place to lead the Company through its next phase of growth.
Financing for this transaction was provided by Cerberus Business Finance, LLC. Houlihan Lokey and Truist Securities served as financial advisors, and McDermott Will & Emery LLP served as legal counsel to Wellspring Capital. Cain Brothers served as financial advisor, and Paul Hastings LLP served as legal counsel to HealthPRO Heritage with respect to the transaction.
About Wellspring Capital Management
Wellspring Capital Management is a leading private equity firm headquartered in New York. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. Over the past 25 years, Wellspring has invested in over 45 platform investments across various segments of the U.S. and global economies. Wellspring’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add‐on acquisitions. The firm functions as a strategic partner, providing management teams with top‐line support, M&A experience, financial expertise and access to resources. For additional information, please visit www.wellspringcapital.com.