Driving Add-On Acquisitions as a Minority PartnerJordan Health Services

Trinity Hunt initiated a targeted industry search for a platform investment in the home health industry in late 2005. We were attracted by the industry’s high degree of stability, steady historical growth and future long-term growth prospects, due to an ongoing shift from facility-based care to lower-cost home care. Trinity Hunt met with Jordan Health Services, the dominant home health provider in East Texas with more than 60 percent market share.

In the fall of 2006, Trinity Hunt received an investment memorandum on a home health agency, Chartwell Community Services, with operations in central and West Texas. Recognizing the synergies between Chartwell and Jordan, Trinity Hunt reached out again to Jordan’s management to discuss a joint acquisition of Chartwell. Since Jordan had incurred substantial leverage on its balance sheet as a result of a recent buyout of a family member, management decided it would be prudent to bring in an outside minority partner to fund the Chartwell acquisition. Trinity Hunt (as minority partner) and Jordan then submitted a joint bid for Chartwell and closed the acquisition together in March 2007.

Working in partnership with Jordan’s management, Trinity Hunt led the acquisition of Chartwell and later assisted with two additional acquisitions that cemented Jordan’s position in North Central Texas. We also assisted management with upgrades to its team, improvements in reporting and metrics, and the rollout of incentive plans for key management. The result? The Company experienced the fastest growth rate in its 35-year history, with revenues and profitability growing almost three-fold before being successfully exited to a financial buyer.

Disclaimer: All information provided herein is for informational purposes only, this case study is illustrative of the types of investments the adviser would make, and should not be relied upon to make an investment decision. Past performance results relate only to the time periods indicated and are not an indication of, nor a reliable proxy for future performance. An investor runs the risk of losing all of its investment. This presentation is neither an offer to sell nor a solicitation of any offer to buy any securities, investment products or investment advisory services.