Brazos Private Equity Partners has agreed to sell its portfolio company Healthcare Solutions to Catamaran Corporation (NASDAQ: CTRX), a provider of pharmacy benefit management services, for $405 million in cash. Brazos first invested in Healthcare Solutions in 2006. Completion of the transaction is expected sometime in the second quarter.
Healthcare Solutions provides medical cost management services to over 800 customers in the workers’ compensation and auto liability markets. The company’s services include pharmacy benefit management, specialty healthcare services, PPO networks, medical bill review, case management and Medicare set-aside services. Customers of the company include insurance carriers, third-party administrators, self-insured and governmental entities. Healthcare Solutions is headquartered northeast of Atlanta in Duluth, GA (www.healthcaresolutions.com).
“We are very pleased with our successful investment in Healthcare Solutions. During the course of our ownership revenues have grown from $80 million to approximately $450 million and the company has successfully completed and integrated three add-on acquisitions that expanded its suite of products and services,” said Jeff Fronterhouse, Co-Chief Executive Officer and Co-Founding Partner of Brazos. “The sale of Healthcare Solutions, which came about due to a preemptive approach made by Catamaran, will result in a great outcome for the company, management, and the shareholders.”
Brazos makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).
Harris Williams & Co. and J.P. Morgan Securities are serving as financial advisors and Weil, Gotshal & Manges is serving as legal counsel to Healthcare Solutions.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-27-15
