Correct Care Solutions, a portfolio company of the Audax Group, has announced that it will acquire Conmed Healthcare Management, a provider of correctional facility healthcare services, for $3.95 per share in cash. The purchase price represents an equity value of approximately $59 million. The transaction is expected to close in the third quarter of 2012.
Correct Care Solutions is a provider of medical, mental health, care management and medical technology services to municipal, county, state and federal jail and correctional facilities serving both adult and juvenile populations. Currently, the company is responsible for providing daily healthcare for over 65,000 inmates in correctional facilities in 21 states. Correct Care Solutions was founded in 2003 and is based in Nashville, TN (www.correctcaresolutions.com).
“Conmed has been actively seeking a partner that not only maintains the integrity of what has been built over the last 28 years, but also represents an attractive opportunity to deliver a return on investment to its shareholders. By joining with Correct Care Solutions, we believe we will achieve that goal,” said Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed.
Conmed has provided correctional healthcare services since 1984, beginning in the State of Maryland, and currently serves county and municipal correctional facilities in ten states: Arizona, Kansas, Kentucky, Maryland, New Jersey, Oregon, Tennessee, Texas, Virginia and Washington. The company is based in Hanover, MD (www.conmedinc.com).
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace and defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, MA and New York, NY (www.audaxgroup.com).
