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TPG Capital mulling offer for healthcare provider LHC Group

14 Mar 2012

TPG Capital is believed to be considering an offer for healthcare and hospice services provider LHC Group.

The private equity giant approached LHC last month shortly after appointing JP Morgan to advise it on its options, according to a report by Reuters.

It said the company, which has a market capitalisation of about $360m, had begun a strategic review process to enhance stockholder value and had not set a definitive timetable for the process.

The news comes days after the Texan buy-out firm was reportedly seeking an eight times return by selling Iasis Healthcare for about $2.8bn.

LHC made a net loss of $13.2m in 2011 compared to a $48.8m profit the year before despite revenues increasing from $631.6m to $633.9m in the same time period.

Its loss per share worked out a $0.73, compared to a $2.68 earning per share for 2010 according to the company’s end of year results.

TPG is currently embroiled in a drawn-out attempt to purchase beleaguered Australian surfwear brand Billabong, having had its third offer rejected at the end of February.

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