E4 Health, a portfolio company of Kinderhook Industries and Mansa Capital, has acquired People Resources and its sister company Student Resource Services (collectively “PRI”). This is the second add-on acquisition for E4 Health.
PRI is a provider of employee assistance programs, managed mental health services, and university student coaching and counseling services. The company operates two divisions, People Resources, which provides employee assistance and managed mental health services, and Student Resource Services, which provides student counseling and coaching services to colleges and universities. The company is based in St. Louis (www.peopleresourceseap.com) (www.studentresourceservices.com).
E4 Health is a provider of employee assistance programs and behavioral health risk management programs. The company is based in Dallas (www.e4healthinc.com).
“The acquisition of PRI is highly strategic,” said Bill Mulcahy, CEO of E4 Health, “PRI’s reputation as a market leader is firmly grounded in their approach which integrates employee assistance and managed behavioral health services into a unique employee-advocate model that targets improved outcomes. Over the last 30 years, Janet Mug has built a fantastic business with a diverse service platform and stellar reputation.”
“E4 Health and PRI fit perfectly together,” said Cindy Sheriff, President of E4 Health. “Our commitment to set industry standards for EAP and wellness delivery through the systematic creation of efficiencies, improved outcomes, and lower healthcare costs aligns well with PRI’s culture and history of positive employee outcomes. We also look forward to leveraging PRI’s strength and expertise in the student assistance market which represents a new service platform for E4 Health.”
Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).
“We are very excited about the acquisition of PRI. This acquisition will further expand our service offerings into the university sector with the addition of Student Resource Services. The company’s longstanding customer relationships and superior service offering make this acquisition very accretive for E4 Health,” said Chris Michalik, Managing Director of Kinderhook Industries.
Mansa Capital is a health care private equity investment firm specializing in high growth companies in the health care services and health care technology sectors. Mansa makes equity investments in operating companies with enterprise values up to $150 million. Mansa has offices in Boston, Miami and Dallas (www.mansaequity.com).
“We are very pleased this add-on acquisition aligns with our original investment thesis for E4 while adding exceptional human capital to the combined business. We see great opportunities in the EAP, wellness and student behavioral health sectors as employers and large institutions seek to offset rising healthcare costs through effective wellness and prevention programs,” said Ruben King-Shaw, Jr., Managing Director of Mansa Capital. “SRI and PRI will be great additions to E4’s outcomes-based strategies.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-13-13
