Acquisition · Disability care services (health care)
LITALICO enters the US with about $30 million deal for Omaha disability care provider DDCN
- Buyer
- LITALICO (Tokyo)
- Target
- Developmental Disability Center of Nebraska (DDCN), Omaha, Nebraska
- Value
- About ¥4.63B (about $29.5M) upfront; reported total up to $50M with an earn-out
- Status
- Completed in June 2024.
- Date
- 2024-06-14
LITALICO, a Japanese provider of job support and child development services for people with disabilities, bought all of DDCN, which runs 17 group homes and day programs in Omaha for people with intellectual and developmental disabilities. LITALICO put the price at about ¥4.63 billion; Behavioral Health Business reported $29.5 million upfront plus up to $20.5 million over three years.
Why it matters
A rare Japanese purchase of a US social care business. LITALICO wants US know-how and Medicaid-funded growth, and the CEO stays on.
About DDCN
Developmental Disability Center of Nebraska was founded in 2015. It is unusually profitable: it had sales of about ¥4.08 billion and an operating profit of about ¥1.45 billion. LITALICO plans to grow DDCN further within Nebraska.
About LITALICO
LITALICO was founded in 2005 and runs about 300 sites in Japan offering education, job training, daily-life skills and care services, and it is building a digital platform for disability care. It plans to use DDCN to learn how the US market for intellectual and developmental disability services works. There were only 18 deals in that US sector in 2023.
Sources
Kakehashi M&A News home
