MTS Health Investors Sponsors Recapitalization of Loving Care Agency
New York, February 16, 2006 – MTS Health Investors, LLC ("MTS") announced today that it has sponsored the recapitalization of Loving Care Agency, Inc. of Fort Lee, New Jersey, the leading provider of home health aides in the state. MTS provided equity financing for the transaction, along with funds managed by Oaktree Capital Management, LLC and Loving Care senior management.
Loving Care was founded by the Karzhevsky family in 1993 to supply home health aides who assist lower-income elderly and other patients with their daily living activities. Today, it is the leading provider of home health aides in New Jersey. In 1996, through Loving Care Pediatric Homecare, the company expanded into home nursing services for pediatric patients, and is now a leading provider of those services in both New Jersey and eastern Pennsylvania. With more than 1,900 caregivers, the Loving Care Agency provides needed care to more than 3,700 patients on an almost daily basis.
"We are very excited to partner with Loving Care. We view the Company as a high-quality, low-cost provider that should benefit from both favorable demographic trends and the increased prevalence of healthcare in the home," said Kenton Rosenberry, a Managing Director of MTS and a director of Loving Care, who led the deal for MTS.
"The recapitalization of Loving Care is a classic MTS investment, where we work with a smaller company in one of the healthcare services sectors to help it grow and maximize value," added Bill Kane, a MTS Senior Managing Director and Loving Care board member.
Bob Fusco, former President of Olsten Health Services (now Gentiva Health Services) and a MTS Operating Partner, also joined the board of Loving Care as Chairman, and will serve as interim Chief Executive Officer. "I look forward to working with Greg Karr and Kasil Karzhevsky, both founders of Loving Care, to expand the company's markets and service lines and capitalize on its current strong market position," said Mr. Fusco.
"Loving Care has built a reputation of excellence in New Jersey and Pennsylvania in the provision of home care services, both in personal care services and high-tech pediatric nursing," added Greg Karr, Vice President of Loving Care and a Loving Care board member. "I am excited about the opportunity to broaden Loving Care's reach into other markets so that we can help more families care for patients in the home."
MTS Health Investors, LLC. located in New York, New York, is a healthcare private equity firm that makes equity investments in the buyout, recapitalization or growth financing of healthcare operating companies. MTS focuses on businesses that operate in services sectors of the healthcare industry – managed care/health insurance, providers of healthcare services, distributors of medical products and providers of outsourced services to the healthcare industry. The firm also invests in manufacturers of low-technology medical products.
MTS sponsors transactions with enterprise values of $25 million to $100 million. The firm also participates in transactions of up to $1 billion or more, typically in partnership with large private equity firms that value MTS's healthcare expertise. For further information, please go to: www.mtshealthinvestors.com.