LCS Completes Planned Recapitalization
DES MOINES, Iowa. January 3, 2022 — LCS, the nation’s second-largest senior living operator, announced today it has completed its planned recapitalization with Redwood Capital Investments (Redwood), McCarthy Capital and LCS employee shareholders. The transaction welcomes Redwood as a new capital partner and renews the ownership interest and commitment from McCarthy Capital and LCS employee shareholders. Financial terms of the transaction were not disclosed.
“LCS has proudly served seniors for over 50 years. Our new capital structure provides the evergreen capital needed to carry out our mission to provide best-in-class senior services for generations to come,” said Joel Nelson, LCS president and CEO. “We are also humbled by the support and endorsement of our long-term shareholders – McCarthy Capital and LCS employee shareholders – each of whom chose to remain invested in our company’s future.”
LCS will use the recapitalization to support the company’s long-term strategic plan to grow real estate ownership, strengthen infrastructure and support for its third-party management and ancillary business lines, as well as invest in the company’s people and growth initiatives that support the company’s service to seniors.
Redwood first entered the senior living industry with the purchase of Erickson Senior Living in 2010. LCS and Erickson will continue to operate independent of one another and maintain their distinct and separate brands.
As a pioneer in the senior living industry since 1971, making a difference in the lives of seniors has been our sole focus since day one. The dedicated LCS Family of Companies is designed to help fulfill your community’s mission. This structure allows us to develop and share expertise across our company to deliver innovative solutions to partners, seniors, and their communities. LCS has the experience, leadership, and integrity to meet the unique needs of your community. When you partner with LCS, you receive more than just a single perspective; you get the experience of six senior-focused companies working together as one. In the field of senior living, Experience is Everything®. For more information, visit LCSnet.com.
ABOUT REDWOOD CAPITAL INVESTMENTS
Redwood is a diversified holding company that provides a permanent home for founder, family, and management-owned businesses. Redwood has investments in 16 businesses across several industries including senior living, distribution, automotive, equipment leasing and real estate industries.
ABOUT MCCARTHY CAPITAL
McCarthy Partners Management, LLC is a registered investment advisor that conducts business as McCarthy Capital. McCarthy Capital, headquartered in Omaha, Nebraska, is focused exclusively on lower middle-market companies. For more than 30 years, the McCarthy organization has been partnering with founders, families, and exceptional management teams to support the growth of their companies. More information about McCarthy Capital can be obtained at www.mccarthycapital.com.