TEAM Services Group – a portfolio company of the “anti-private equity firm” Alpine Investors – has acquired 24 Hour Home Care.
The exact details of TEAM’s investment in the Los Angeles-based home care company have not yet been disclosed. 24 Hour Home Carewill continue operating by the same name under TEAM’s “Public Choices” division.
Alpine has made several in-home care investments since its formation, including TEAM’s purchase of AmeriBest Home Care in October 2019.
“Our partnership with TEAM will allow us to further invest in our business and continue providing high-quality services for all of our clients and employees,” David Allerby, the CEO and co-founder of 24 Hour Home Care, said in a press release. “TEAM’s confidence in our vision to become one of the largest non-medical home care providers in the nation has ignited our passion to continue to pursue expansion and merger opportunities while maintaining our organizational core values and people-centric culture.”
Los Angeles-based 24 Hour Home Care had been independent since its founding in 2008. Currently, it has 20 locations across California, Arizona and Texas.
Although it has traditionally operated mostly in private-pay home care, the company recently has been expanding its Medicaid business. Overall, it employs over 10,000 caregivers across its footprint.
Recently, 24 Hour Home Care’s president and other co-founder – Ryan Iwamoto – told Home Health Care News that the goal was eventually to be the largest home care provider in the U.S. It’s clear that Allerby and Iwamoto thought that joining forces with TEAM was the next logical step to get there.
“I think if we apply the same operations to Medicaid, we can be very successful,” Iwamoto said in September. “If you look across the country, there’s no non-medical home care provider that does all three of those segments very well. Usually it’s more about sticking to [one segment or another]. We feel like we can be — with our track record — strong in all three of those areas.”
Based in San Diego, TEAM is a staffing and home care services company that currently operates in 24 states. In January, the company announced that it had raised an additional $100 million in funding.
TEAM cared for about 1,500 clients in 2015 and has grown its census to over 20,000 since then.
The investment in 24 Hour Home Care represents TEAM’s 65th home care investment over the last six years, according to the company.
“We are absolutely thrilled to partner with the 24 Hour Home Care team,” Josh Greenberg, the CEO of TEAM Services Group, said in the release. “24 Hour Home Care’s people-driven mindset has allowed them to build a world-class business with a well-deserved reputation amongst its clients, caregivers and employees. 24 Hour Home Care’s vision and values align perfectly with TEAM’s, and we look forward to growing together going forward.”
TEAM’s growth surge has come under the guidance of the San Francisco, California-based Alpine Investors, a PE firm that invests in companies operating in the media, software, health care and consulting services sectors in both the U.S. and Canada.
“Our industry, probably deservedly so, has a somewhat tarnished reputation,” Dan Sanner, a partner at the firm, told HHCN in 2019. “We wanted to be the anti-private equity firm. We look to partner with founder owned-and-operated businesses in two industries: software and services. And within health care, specifically home care.”
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