Nationwide company to assist developmentally disabled.
Bill M. Wooten, Ph.D., formally president of Living Centers -- DevCon, a wholly-owned subsidiary of Living Centers of America, announced today that he has formed a partnership with the Chicago-based equity investment firm Golder, Thoma, Cressey, Rauner, Inc. (GTCR) to create American Habilitation Services, Inc. (AHS).
Based in Houston, Texas, AHS will provide a variety of services to individuals with mental retardation and developmental disabilities (MR/DD). The new company will seek to develop a nationwide network of individual supports and residential options.
AHS's future growth is based on three strategic platforms in the industry: -0-
1.) acquisition of small to mid-size MR/DD companies already operating multiple facilities;
2.) development of new homes and services in states that are requesting new development; and
3.) obtainment of management contracts for privatization of state-owned facilities.-0-
"There is a tremendous need for a company that has the management expertise of providing cost-effective, high-quality services in the marketplace," said Wooten. "Service providers across the country are facing an enormous amount of change, uncertainty and ever increasing financial pressures.
"It is my belief and experience that only through careful consolidation of resources will providers of services be able to compete in and succeed in today's rapidly changing healthcare environment. My goal is to make sure that the individuals served by AHS receive the highest quality services available."
GTCR, a firm with over $700 million in private equity funds and a leader in industry consolidation investing, has committed capital to fund the start up of AHS and of future acquisitions.
"GTCR has built many industry leading companies through consolidation over the last 15 years," said Bryan Cressey, principal of Golder, Thoma, Cressey, Rauner. "With Bill's unparalleled experience and capabilities and our financial resources, we will build the highest quality company in the industry."
"GTCR specializes in industry consolidation investments which should prove useful in the highly fragmented industry of care-providers for those with mental retardation/developmental disabilities," said Don Edwards, also of Golder, Thoma, Cressey, Rauner. "Given Bill Wooten's experience, AHS has the capability to acquire and improve many of these regional companies and, over time, form the nation's premiere provider of MR/DD care."
Wooten added, "With the movement of the public sector in many states to a managed health care approach, there is significant need for a company that has geographically clustered operations, utilizes high-end information systems and maximizes overhead."
CONTACT: American Habilitation Services Inc.
Bill Wooten, 713/492-7302
Edelman Public Relations
Dan D-Armond, 713/623-2666
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|Date:||Mar 26, 1996|
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