PRIVATE EQUITY
STRUCTURED CAPITAL

CASE STUDIES

Industry Vertical
Healthcare Services
Headquarters
Lenexa, KS

www.axelacare.com
Exited: 2015

AxelaCare

  • Business

    AxelaCare Holdings, Inc. ("AxelaCare") was a leading provider of home infusion services for chronic and acute conditions. AxelaCare was the fifth largest and one of the fastest growing national providers of home infusion treatment, supported by its patient-centric approach and clinical leadership.

  • Situation

    Harvest first learned about this investment opportunity and met the AxelaCare management team in January 2013 during a healthcare conference. Harvest was interested in the company given favorable industry trends and the company’s impressive growth profile. Harvest had a solid understanding of the opportunity within home infusion due to its prior consideration of other investment opportunities within this niche, including a key competitor to AxelaCare.

  • Harvest Partners Investment

    In April 2013, Harvest purchased AxelaCare with the existing management team. To fund the acquisition, Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note.

  • Investment Thesis

    • Large, growing and fragmented industry with favorable tailwinds, including a shift toward lower-cost, home-based care
    • Attractive, high growth business model
    • Multiple growth levers
    • Strong, clinically focused management team with track record of success
  • Value Creation

    • Transformed from regional Midwest platform with 5 pharmacies to national provider with 35+ pharmacies supporting 48 states
    • Significantly diversified the business by referral source, supplier base and payor mix
    • Professionalized sales force
    • Completed three transformative and numerous smaller tuck-in acquisitions
  • Outcome

    • Sold to OptumRx, a division of United Healthcare, in November 2015