Today, a mid-market private equity firm, GI Partners, announced the sale of its portfolio company, Plum Healthcare Group LLC, to Bay Bridge Capital Partners. In healthcare services, Plum Healthcare Group LLC is one of the fastest growing companies.
For limited partners in GI Partners Fund II L.P., a return of approximately three times invested capital was generated from the sale of Plum. Located in strategic geographic clusters throughout California, Utah, and Arizona, Plum's current portfolio consists of 50 skilled nursing facilities and five home health and hospice agencies. In 2006, Plum was acquired by GI Partners and known for its pre-eminent clinical care, it serves over 5,000 medically-complex patients every day.
The firm's six-years of ownership has successfully acquired and turned around 39 skilled nursing facilities. Plum has achieved industry-leading patient outcomes and occupancy rates by improving clinical quality and increasing staff across its facilities. It has also significantly increased the mix of medically-complex residents it serves. Plum has strengthened facility-level resources, clinical and administrative consulting services, and invested heavily in clinical quality and IT infrastructure under GI's stewardship.
By moving into two additional states, Plum has also diversified geographically. Moreover, by entering into the home health and hospice markets, it has developed new post-acute service lines. Over the last five years, thanks to these and other initiatives, Plum has grown revenue and EBITDA at a 32 percent and 30 percent compounded annual growth rate ("CAGR"), respectively.
"We’re pleased with everything we were able to accomplish working closely with Plum management over the past few years, despite the challenging healthcare environment. The unique human touch Plum brings to healthcare services business has made it a rewarding investment,” said Howard Park, a managing director of GI Partners.
He added that its initial investments in clinical quality, staffing, infrastructure, IT, and key personnel have really positioned Plum to generate success over the next phase of growth that it is about to embark on with Bay Bridge.
Edited by Brooke Neuman