Livingstone brings home outstanding result for leading home care franchisor

  • Sep 2017
  • Healthcare
  • M&A: Sell-Side
  • US
Homewatch CareGivers, senior care image

Livingstone’s Healthcare team is pleased to announce the sale of Homewatch International, franchisor of Homewatch CareGivers (HWCG), to Authority Brands, a portfolio company of PNC Riverarch Capital. Livingstone acted as the exclusive financial advisor to HWCG.

With over 35 years of brand recognition, HWCG is a premier franchisor of in-home senior care services with more than 200 franchise locations across the U.S., Canada, and Latin America. The Company delivers a variety of in-home, person-directed personal and companion care services including elder care, customized care for individuals with developmental and physical conditions, after-surgery care, and prenatal/postnatal care.

Julie R. Smith, Chief Executive Officer of HWCG commented, “This acquisition will take Homewatch CareGivers to the next phase of growth as we endeavor to improve our market share and strengthen our positioning within the continuum of care.” She continued, “Livingstone was the perfect partner to guide and prepare us for sale. Their knowledge of the home care universe coupled with their significant transaction experience in the sector resulted in an outstanding result for all stakeholders.

Authority Brands and PNC Riverarch Capital will facilitate the Company’s growth and expand its international brand.

“This investment in HWCG is based on many factors, including the Company’s personalized care philosophy, the organizational commitment to the people they work with and care for, as well as the foundation for accelerated growth,” said Michael Rost, Managing Director of PNC Riverarch Capital.

Partner Jim Moskal, head of Livingstone’s Healthcare practice, commented, “The robust interest in HWCG from private equity firms demonstrates the attractiveness of the home care franchisor model, including strong demand driven by the aging U.S. population, a minimal regulatory environment, private pay dynamics eliminating government reimbursement risk, and the highly recurring revenue model resulting in attractive cash flow generation.”

This is the fourth home health and/or home care deal completed by Livingstone in recent months, following Home Helpers, Infinity HomeCare, and Option 1 Healthcare Solutions.

About the Companies

Homewatch CareGivers

Founded in 1980, Homewatch CareGivers delivers a variety of professional in-home, person-directed personal and companion care services including elder care, customized care for individuals with developmental and physical conditions, after-surgery care, and help for those living with dementia. With a significant leadership presence at the national level through Home Care Association of America (HCAOA) and the National Quality Forum, the Homewatch CareGivers’ mission is to provide the best-in-class care, to serve as a vital part of the continuum of care, and to provide the support franchisees and caregivers need to find success and make a difference in their communities.

Authority Brands

Headquartered in Columbia, Maryland, Authority Brands, LLC is the parent company of two leading home service franchisors, The Cleaning Authority and Homewatch CareGivers. Together, these brands provide recurring home services through more than 300 franchise locations in the U.S., Canada, and Latin America. Authority Brands is dedicated to supporting individual franchisee growth through providing strong marketing, technology, and operational support.

PNC Riverarch Capital

PNC Riverarch Capital is a middle-market private equity firm that invests in privately-held companies headquartered throughout North America. Their investment philosophy is rooted in the belief that building great companies requires a long-term view and a flexible investment strategy. PNC Riverarch Capital is an affiliate of The PNC Financial Services Group, Inc. (“PNC”) and represents PNC’s continued dedication to serving the middle-market. Since 1982, PNC Riverarch Capital and its predecessors have provided equity capital to over 100 companies.

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