Minneapolis (January 22, 2015) — Yukon Partners (“Yukon”), a provider of mezzanine capital for middle market private equity transactions, is pleased to announce its mezzanine and equity investment in Encore Rehabilitation Services, LLC (“Encore” or the “Company”).
Encore, headquartered in Farmington Hills, MI, is a provider of outcome-driven rehabilitative services and associated compliance and revenue cycle support services primarily to skilled nursing facilities (“SNFs”). Encore manages the delivery of a full spectrum of physical, occupational, and speech therapy services and provides sophisticated quality, compliance, and documentation capabilities to its clients. These services enable clients to improve their operating efficiency and financial performance while helping lower total healthcare costs through shorter length of stays, lower readmission rates, and improved clinical outcomes. The Company services post-acute care facilities in 10 states.
Revelstoke Capital Partners (“Revelstoke”) sponsored the transaction in which it, Yukon and other institutional co-investors made an investment in Encore. Mezzanine capital was provided by Yukon and Norwest Mezzanine Partners. Ally Corporate Finance served as administrative agent on the senior credit facility with Golub Capital also participating in the transaction. Ally Corporate Finance acted as joint lead arranger and sole bookrunner on the transaction. Management will continue to operate the business on a day-to-day basis.
Revelstoke will complement the Encore management team’s vision with strategic guidance and additional capital to accelerate the Company’s growth. Revelstoke will also leverage its transactional experience and network of industry contacts to pursue selective acquisitions and organic geographic expansion.
“Since day one of Encore, we have positioned the Company as a leading therapy provider focused on developing long term partnership relationships with our clients which leads to higher quality outcomes and reduced costs for payors,” remarked Linda Shackelford, Co-Founder and CEO of Encore. “We look forward to our partnership with Revelstoke and believe that their healthcare experience will assist us in continuing to grow our business.”
“Encore provides high quality care for patients and a compelling value proposition to its clients and payors,” said Mark King, CEO, Managing Partner and Co-Founder of Revelstoke. “We are enthusiastic about the prospect of partnering with an extremely talented and experienced management team to grow Encore and further solidify its position as a leader in outsourced post-acute therapy services. Yukon played an invaluable role in supporting Revelstoke and Encore.”
“Our partnership with the principals of Revelstoke is entering its third decade, and we are again delighted to invest alongside Mark King and his partners.” said Michael Hall, Managing Partner of Yukon. “We are confident that Revelstoke’s expansive healthcare experience will complement Linda Shackelford and her team in furthering Encore’s history of excellence.”
Encore, formed in 2007, provides outsourced therapy services and associated compliance and revenue cycle support services to post-acute care facilities. Encore’s services enable clients to recognize improved operating efficiency and enhanced financial performance while simultaneously providing patients with a higher level of therapy which increases patient satisfaction and clinical outcomes, and ultimately decreases the total per patient healthcare cost for payors via shorter length of stays and lower readmission rates. For more information on Encore, please visit www.encorerehabilitation.net.
Yukon Partners is an independent and unaffiliated mezzanine firm primarily serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, and public-to-private buyouts. Yukon Partners is based in Minneapolis, Minnesota. For more information, please visit www.yukonpartners.com.
Revelstoke is a private equity firm formed by experienced investors who strive to partner with management teams to execute on a disciplined organic and acquisition strategy to build industry-leading companies. Revelstoke’s Managing Partners, Mark King, Dale Meyer, and Simon Bachleda, have completed over 100 platform and add-on acquisitions, representing over $5 billion of total enterprise value. For more information, please visit www.revelstokecp.com.
For more information, please contact: