Clearview Capital has signed an agreement to sell Advanced Medical Personnel Services (AMPS), a healthcare staffing company, to publicly-traded AMN Healthcare Services for $200 million with an additional payment of up to $20 million based on AMPS’ 2019 performance.
AMPS specializes in the placement of physical therapists, occupational therapists, speech-language pathologists and specialized nurses on traveling assignments to over 300 facilities nationwide, which include nursing homes, hospitals, home health organizations and school systems. The company recently launched a platform that serves the needs of children within large school districts through both on-site and telehealth therapists. AMPS was founded in 1989 and is headquartered in Port Orange, FL (www.gowithadvanced.com).
AMPS has an annualized run rate of approximately $140 million in revenue and adjusted EBITDA of $20 million. This results in a purchase price multiple, excluding the 2019 earn-out, of 10x adjusted EBITDA.
The performance of AMPS has been supported by positive trends in the healthcare market that include an aging population, greater access to healthcare coverage as a result of the Affordable Care Act, increasing utilization of physical, occupational and speech therapy, and a shortage of qualified nurses and therapists, especially in less desirable, harder-to-serve locations.
During its ownership of AMPS, Clearview closed three add-on acquisitions with the buys of Staffing Robot, a Portland, OR-based provider of design, development and marketing services to staffing and recruiting companies, in November 2016; Sacramento, CA-based Rise Medical Staffing in April 2016; and Noblesville, IN-based IPI Travel in September 2016. Both Rise and IPI specialize in the placement of registered nurses on 13-week travel assignments nationwide.
“With AMPS, we immediately saw an opportunity to partner with a highly-talented management team, led by CEO Jennifer Fuicelli, to quickly build a larger organization in a highly-fragmented, growing industry,” said Matthew Blevins, a partner at Clearview Capital. “In almost exactly four years, we were able to close three complementary add-on acquisitions while investing in continued organic growth initiatives such as expansion into the attractive school staffing segment, resulting in revenue and EBITDA more than tripling during our investment.”
“Clearview Capital has been instrumental in supporting our management team’s long-term vision for the company,” said Ms. Fuicelli. “In addition to providing the necessary capital to support acquisition growth, Clearview Capital was willing to invest in new service lines and capabilities, including investments in new recruiters, to accelerate growth in the school staffing market, and investments in teletherapy technology to further differentiate AMPS in the marketplace.”
Clearview acquired AMPS in May 2015 through Clearview Capital Fund III LP which closed in June 2013 with $325 million of committed capital. “The sale of AMPS will mark our third successful exit from Fund III,” said Calvin Neider, managing partner and co-founder of Clearview Capital. “We have thoroughly enjoyed our strategic partnership with Jenn and the entire AMPS team and wish all the best for the company as it joins forces with one of the largest and most prominent healthcare staffing organizations in the country.”
AMN Healthcare Services (NYSE: AMN), the buyer of AMPS, provides healthcare staffing services to healthcare facilities throughout the United States. The company had revenues in 2018 of $2.1 billion and is headquartered in San Diego (www.amnhealthcare.com).
Clearview Capital invests from $8 million to $50 million of equity in companies that have from $3 million to $15 million of EBITDA. Sectors of interest include business services, healthcare services, manufacturing, and specialized distribution. Clearview is currently making investments from Clearview Capital Fund IV LP which closed in July 2018 with $550 million of capital. The firm was founded in 1999 and is headquartered in Stamford, CT with an additional office in Los Angeles (www.ClearviewCap.com).
The sale of AMPS to AMN is expected to close by the end of June 2019.
© 2019 Private Equity Professional | May 9, 2019