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Longhorn Deal Spotlights Healthcare Trend
M&A abounds as more patients are recovering in a “medical home” rather than a hospital
BY ANTHONY NOTO
Longhorn Health Solutions Inc.,
a provider of consumable medical "We started the marketing effort in early- to mid-
supplies and equipment, already April," Earles adds, with about two-thirds of the
has a strong presence in Texas, interested bidders being outside of Texas. About 40
but there's still a large portion of the market share companies expressed serious interest, he says, with
remaining, says Satori Capital's co-founder Sunny 60 percent being private equity firms.
Vanderbeck, the company's newest owner. In the end, Longhorn founder and chief executive
Longhorn brings disposable medical products- Britt Peterson connected with Vanderbeck and "the
incontinence supplies, diabetes strips and specialty classic PE deal appealed to
foods-to the homes of Medicaid, Medicare and him," McCallister says.
privately insured patients. The company distributes Terms of the deal, announced
the supplies in vans dispatched from its 10 on Feb. 20, were not
warehouses (pictured) located across Texas: Austin, disclosed, but Satori generally
Houston, Beaumont, San Antonio, El Paso, Fort makes investments that hover
Worth, Corpus Christi, Harlingen, Lubbock and between $25 million and $75 Fred McCallister
Waco. It recently launched a pharmacy division so Allegiance Capital
million.
that it can deliver medication
as well. Under Satori's ownership, Longhorn will focus on
organic growth in the near term, but add-on
"It's the future," says Brent acquisitions will serve as a way for the company to
Earles of investment bank eventually grow in other states, Vanderbeck explains.
Allegiance Capital Corp. who
ran the sale process for "We haven't made any investments in healthcare," he
Longhorn alongside fellow Brent Earles
adds. "What we saw here was a great services
adviser Fred McCallister. Allegiance Capital company in healthcare."
More clients, they say, are banking on the notion that Prior to Satori, Vanderbeck co-founded and served as
more patients are recovering in a "medical home" chief executive of Data Return, a provider of
rather than a hospital. managed services and utility computing. Before that,
"There's certainly an interest in this space, not just in he worked at Microsoft Corp. (Nasdaq: MSFT).
Texas but across the country."
MERGERS & ACQUISITIONS April 2013