April 22, 2019 (Boston, MA) – Covington Associates, a leading middle market investment bank announced its role as financial advisor to New England Geriatrics (“NEG”), a provider of comprehensive and quality psychiatric care for patients and their families, in the sale of its business to HealthDrive, a leader in delivering integrated specialty healthcare services to residents of long-term care, skilled nursing, and assisted living facilities.
This acquisition will allow HealthDrive to expand its services as it seeks to create the premier multi-specialty healthcare platform for vulnerable populations. This is the first acquisition for HealthDrive as a portfolio company of Bain Capital Double Impact, the impact investing business of Bain Capital. Financial terms of the private transaction were not disclosed.
NEG was founded on mission-driven principles in 1994 to provide mental health services to underserved geriatric populations in Massachusetts. Today, the company serves over 13,500 Massachusetts and Connecticut residents in over 129 long-term care facilities, four managed inpatient geriatric psychiatric units, and one outpatient clinic through its dedicated network of mental healthcare professionals. As consultants to the facilities and their primary care physicians, NEG clinicians provide evaluation and diagnostic services, medication management, psychotherapy, behavior management consultation, and evaluation of patients for inpatient psychiatric hospitalization.
“We selected HealthDrive as our partner because it is most aligned with our commitment to clinical excellence for the vulnerable population New England Geriatrics serves,” said Steve Marcus, the current CEO of NEG who will join HealthDrive as a senior adviser. “We have worked side-by-side with HealthDrive providers in skilled nursing facilities for many years, and it is apparent that the HealthDrive team truly understands the population that we at New England Geriatrics make our mission to serve. We are confident that, through our partnership with HealthDrive, New England Geriatrics will continue to offer the same great level of care that we have provided over these past 25 years.”
“Our acquisition of New England Geriatrics is an important step in our goal to expand our lines of specialty healthcare services as we build the leading provider of cost-effective, mission-driven care to the frail elderly population while prioritizing our clinical providers satisfaction,” said Dan Baker, CEO of HealthDrive. “Our experience has shown that an integrated healthcare approach combining a range of specialty medical services with timely and preventative care leads to improved senior care outcomes. The comprehensive psychiatric healthcare expertise that New England Geriatrics brings will help to advance that approach and reinforce our shared roots in Massachusetts.”
Marcus added, “I have bought and sold many companies in my career, none of which was bigger than the one that Covington was involved in. This company was our baby, that my wife and I put our entire careers into. Covington Associates was the correct partner through this process, helping us achieve our end goal of retirement. From the initial boardroom meeting, to the closing call together, I could not have asked for a better group to walk with along this journey. They never deviated from the plan and their expertise and value was profound.”
About Covington Associates
Covington Associates is an investment banking firm offering advisory services in the areas of M&A, capital raising, strategic advisory, fairness opinions, and valuations to middle-market companies across the Healthcare, Business Services, Consumer & Industrial, and Technology verticals. Covington’s mission has remained unchanged since its founding in 1991 – provide clients with the highest caliber of senior-level attention and to remain an advice driven and results focused organization. Since its inception, Covington Associates has completed more than 300 transactions globally for both private and publicly traded companies totaling over $17 billion. Further information about Covington Associates can be found at http://www.covingtonassociates.com/overview.
About New England Geriatrics
New England Geriatrics was founded in 1994 by Steven P. Marcus, MSW. His vision was to provide mental health services to elders living in nursing homes throughout Massachusetts. As consultants to the facilities and their primary care physicians, NEG clinicians evaluate and treat residents referred to them with a physician’s order. A resident, family or facility staff member may request services. Our company was founded on four core values: Caring, Respecting, Responding and Understanding. It is with these four core values that NEG clinicians enrich the lives of our clients. For more information visit http://www.negeriatrics.com/.
HealthDrive was founded in 1989 by medical professionals who saw the need for a higher level of on-site medical and dental services in long-term care facilities. HealthDrive has grown to employ 190 medical and dental providers in over 2,000 facilities, serving more than 200,000 enrolled senior living residents across four practices around the nation. For more information visit https://healthdrive.com/.