DTRT Health Acquisition today filed an investor presentation highlighting its proposed merger with Consumer Direct Holdings. Announce last week, the deal implies an enterprise valuation for the target of $681 million.
Based in Missoula, Montana, Consumer Direct is a national in-home personal care provider offering in-home care assistance and customer service to older adults and people with disabilities who require long-term care and support with activities of daily living.
The transaction is expected to deliver $234 million of cash held in the SPAC’s trust account (assuming no redemptions) and up to $150 million in debt financing, in addition to $99 million of cash on CDH’s balance sheet.
The enterprise valuation is 10.1x pro forma 2023 adjusted EBITDA. The company’s current equity holders will own approximately 61% of the pro forma company after closing, assuming no redemptions. Existing Consumer Direct shareholders will also receive a portion of their consideration in cash. Read more.
