Skilled Healthcare Group Inc., a Foothill Ranch-based nursing home company, has undergone a $420 million recapitalization as a prelude to a possible sale, according to The Deal, a venture capital news site..
Heritage Partners Inc. of Boston, which owns about 50% of Skilled, said it hired Credit Suisse First Boston to help it explore “strategic alternatives” for the company.
Options include a sale or initial public offering, Mark Jrolf, a Heritage general partner, told The Deal.
Skilled has about $413 million in revenue and $64 million in earnings before interest, taxes, depreciation and amortization, Jrolf said. He said his firm has invested some $100 million overall into Skilled.
The company could sell for as much as 10 times EDITDA, Jrolf said. That could value Skilled at more than $600 million.
That figure could be high. In May, Irvine-based nursing home operator Sun Healthcare Group Inc. agreed to pay $150 million for New Mexico’s Peak Medical Corp.
Peak runs 62 facilities. Skilled has 71 nursing homes mostly in Texas and California.
Skilled was previously known as Fountain View Inc. and emerged from bankruptcy in 2004.
