NewSpring Health Capital, the dedicated healthcare fund of NewSpring Capital, has made a $5.5 million investment as part of a total $13.5 million investment in ContinuumRx Services. Health Enterprise Partners also participated in the new financing.
ContinuumRx provides home infusion and other specialty pharmacy services to chronic and acute patients through joint ventures with existing health systems. ContinuumRx operates in five Southern US markets, representing five health systems and a total of 25 hospitals. The company is headquartered in Birmingham, AL, with additional offices in Huntsville, Nashville, and Knoxville (www.continuumrx.com).
ContinuumRx will use the investment proceeds to fund growth initiatives and expand into new markets. “ContinuumRx’s unique business model, forming joint ventures and becoming a partner with hospitals, offers a strong value proposition to health systems wanting to control their post-acute network and improve patient care while reducing hospital readmissions,” said Brian Murphy, NewSpring General Partner. “The company has grown significantly since inception and we are thrilled to add them to our growing portfolio of successful healthcare companies.
NewSpring Capital is a provider of private equity capital through a family of funds including NewSpring Ventures, NewSpring Health, and NewSpring Mezzanine. NewSpring Mezzanine provides mezzanine capital for expansion stage and buy-out opportunities for Mid-Atlantic based companies that are active in the business services, health care, information technology, and specialty manufacturing sectors. The firm has offices in Radnor, PA; Short Hills, NJ; and Washington, DC (www.newspringcapital.com).
Chris Bodine, a NewSpring venture partner and former President of CVS Caremark, will join ContinuumRx’s board of directors.
“We are very pleased to close this financing and move forward with our growth plans. Attracting a quality lead investor with a deep understanding of healthcare services in general and the pharmacy sector specifically was very important to us. New Spring Capital meets both criteria and we are excited to begin working with Brian, Chris and the rest of the New Spring team,” said ContinuumRx CEO, Chuck Jett. “This new capital will enable expansion into new markets as well as expanding services within existing markets.”
Chicago-based investment bank B.C. Ziegler and Company (www.ziegler.com) was the exclusive financial advisor to ContinuumRx.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-23-15