Morning Hubsters, Craig McGlashan here on Tuesday Wire duty.
Opening things this morning we have a deep dive into Sunstone Partners’ acquisition of healthcare software developer Accuhealthas partner Ankur Rathi talks us through the reasoning behind the investment and the growth plans for the business.
Next we look at home renovations, including some projected figures for spending in the sector and then a trio of deals linked to the sector. First we have the Halifax Group selling an installer of exterior building solutions to Monomoy Capital Partners; next we look at a KKR- and Cortec Group-backed company making a push in Canada; and we finish with Silver Oak Services Partners leading the recap of a landscaping company.
Monitoring
Sunstone Partners aims to add new capabilities to scale software developers Accuhealth as its platform in the remote patient monitoring (RPM) and chronic care management (CCM) sectors, Sunstone partners Ankur Rathi told PE Hub’s John R Fischer.
Accuhealth, based in New York City, develops RPM and CCM software with the objective of facilitating real-time primary care in clinical settings and at home for patients. Sunstone invested in the business in April.
“Accuhealth is our platform in this space, but we see an opportunity to acquire additional capabilities in a highly fragmented market that sells to independent physicians and health systems,” Rathi told PE Hub. “We believe there is a great opportunity to create a category leader in this space offering a multi-modality approach to connect with patients on a remote basis across specialties and disease states.”
Sunstone’s portfolio operations team, new executive chairman Chris Schmaltz and Accuhealth’s management team will seek to expand Accuhealth’s service offerings, “attract top talent,” and “improve patient outcomes,” according to the deal announcement. Sunstone believes that RPM and CCM will improve patient outcomes and reduce overall costs for healthcare systems, driving adoption of these software technologies.
Check out the full interview for more about Sunstone’s healthcare investments.
Renewed renovation
Spending on improvements and repairs to owner-occupied homes is expected to steady at “near-record levels,” according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University – and private equity is taking note.
The Leading Indicator of Remodeling Activity released by the program in mid-April said that annual owner spending on renovations and maintenance will drop by 7 percent in the third quarter of 2024 before slowing to a decline of 2.6 percent in the first quarter of next year.
“Residential remodeling is expected to benefit from the rebounding housing market and stabilizing material costs as we move into next year,” said Carlos Martin, director of the Program, in a statement. “While home improvement and repair spending is down from pandemic-induced highs, the nation’s aging homes continue to need investment in critical replacements, home performance deficiencies, as well as modernization.”
Despite the $451 billion of expected spending in over the coming year being slightly below the $463 billion spent over the last year, the remodeling downturn “is poised to be fairly modest and short-lived with market expenditures steadying at near-record levels,” said Abbe Willassociate director of the Program.
We’ve got a trio of deals in that world to report this morning.
The Halifax Group has sold Southern Exteriorsan installer of exterior building products based in Jackson, Georgia, to Monomoy Capital Partners.
Halifax, which acquired Southern Exteriors in May 2021, will maintain a minority investment in Southern Exteriors.
“We observed structural deficits in residential housing in the United States, exacerbated in the Southeast, and sought to partner with a scaled provider primarily serving the single-family construction sector,” said Amit Swaroopa principal at Halifax, in a statement.
Meanwhile, Groundworksbacked by TRC and Cortec Grouphas begun its expansion into Canada with the acquisition of Doug Lacey’s Basement Systemsa basement and crawl space services contractor based in Calgary.
Groundworks is expanding its footprint and market share strategically and rapidly. In 2024, it opened new offices in Wichita, KS, Wilmington, NC, Louisville, KY, San Jose, CA, and Atlanta. It also acquired companies in Oklahoma, Ohio and New Jersey, and entered the commercial poly market with the acquisition of Dallas-based URETEK South.
Finally, Silver Oak Services Partners has led a recapitalization of Beary Landscapinga Lockport, Illinois-based provider of recurring landscaping and snow removal services.
Silver Oak invested alongside Beary’s founder and CEO, Brian Beary, and other senior management in the transaction. The existing management team will continue in their current roles with Beary and retain a significant ownership stake in the business.
Right, that’s all from me today. In a change to the usual schedule, Rafael Canton will write to you tomorrow.
Cheers,
Craig