Chicago Growth Partners has completed a dividend recapitalization of Advanced Pain Management (APM), one of the largest pain management groups in the country. Chicago Growth Partners acquired APM in December 2010. Since CGP’s acquisition the company has experienced strong growth in the demand for its services which enabled this dividend recapitalization.
The recapitalization was funded with excess cash from the company’s balance sheet and a third party debt facility. Proceeds from the transaction were used to refinance the company’s existing debt and pay a dividend to shareholders. This transaction was structured to provide the company with additional operating flexibility as well as expand the capital available to support APM’s organic growth and fund potential acquisitions.
APM has 30 board certified physicians performing interventional pain management procedures on patients suffering from chronic neck and back pain. The company designs custom treatment regiments that include interventional procedures, medication management, and complementary services such as psychotherapy, massage and acupuncture. APM’s treatment programs are designed to delay or eliminate the need for invasive and expensive back surgery, reduce a patient’s reliance on Schedule II drugs, and improve the patient’s overall quality of life. In 2012, the company had approximately 180,000 patient encounters at over 40 ambulatory surgical center and clinic locations across Wisconsin and Minnesota. APM was founded in 1999 and is based in Greenfield, WI (www.apmhealth.com).
Chicago Growth Partners invests from $15 million to $75 million of equity in companies with revenues from $15 million to $150 million. The firm targets four primary sectors: education; healthcare products and services; tech-enabled services; and industrial technology. CGP is currently investing its second fund, Chicago Growth Partners II, with $500 million of capital commitments. The firm is based in Chicago (www.cgp.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-5-13