SunCrest Healthcare Merges With OMNI Home Health

Harpeth Capital is pleased to announce the merger of SunCrest Healthcare, Inc. (“SunCrest”) with Omni Home Care (“OMNI”), creating one of the largest post-acute care providers of home health and related services in the Southeastern U.S. With operations in 11 states, the combined company will have revenues approaching $200 million.

This successful transaction is the latest in a remarkable growth story for SunCrest, which was founded in 2005 and began operations in December 2006 with the acquisition of its first agency. Harpeth Capital had the pleasure of assisting the founders of SunCrest with their initial capital raise in 2006, a follow-on capital raise and debt financing in February 2008 in support of an acquisition, the placement of a $32.5 million senior credit facility in June 2010, and a string of acquisitions to expand their footprint.

The combined company will be run by John “Wally” Dant, President and CEO of SunCrest, and Gary Rasmussen, CFO of SunCrest, both of whom were among the founders of the company. Said Wally of the merger, “We couldn’t be happier that our organizations are combining forces, especially since our patient care goals are so complementary. We’re creating a stronger company that will continue to provide quality, compassionate services to our patients and their families in their homes.” Said Gary, “This is an exciting transaction for SunCrest and we appreciate the assistance of the team at Harpeth Capital who has been with us since day one.”

The merger results in the exit of SunCrest’s sponsors, Fulcrum Ventures (initially invested in 2008) and Prudent Capital (initially invested in 2006), both of whom participated in follow-on financings in support of the company’s acquisition strategy and enjoyed successful investments.

OMNI is a portfolio company of New MainStream Capital and MBF Healthcare Partners, both of whom made additional investments in support of the transaction. The management team of SunCrest also maintains an equity stake. Financing for the transaction was joint lead arranged and underwritten by affiliates of GE Capital Corporation, SunTrust Robinson Humphrey and BMO Capital Markets.

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