H.I.G. Capital News
Executive Managing Director
1450 Brickell Avenue
Miami, FL 33131
H.I.G. Capital Completes the Sale of PMSI
MIAMI – October 22, 2013 – H.I.G. Capital, LLC ("H.I.G."), a leading global private equity investment firm with more than $13 billion of equity capital under management, announced today that it has completed the sale of its portfolio company PMSI ("PMSI or the "Company") to an affiliate of Kelso & Company and StoneRiver Group. Simultaneous with the sale, the Company will be merged with Progressive Medical to create an industry leading provider of customized, innovative, and clinically-focused solutions to manage pharmacy benefit management ("PBM"), durable medical equipment, home health care, transportation, translation and Medicare compliance solutions for workers’ compensation industry.
After acquiring PMSI in 2008 from AmerisourceBergen, H.I.G. partnered with management to invest significant resources in PMSI to rebuild its infrastructure, transform its service offering and create a compelling PBM solution. The revamped client value proposition resonated in the marketplace and propelled significant revenue and EBITDA growth during H.I.G.'s ownership. The transaction adds to H.I.G.’s longstanding track record of successful investments in the workers’ compensation and healthcare services industries.
Based in Tampa, FL, and founded in 1976, PMSI is an industry pioneer and one of the nation’s largest and most experienced companies focused on workers’ compensation cost containment. The Company develops solutions to control the growth of medical costs in workers’ compensation and provides the innovation, focus, expertise, analytics and technology needed to successfully deliver workers’ compensation benefits for the largest insurance companies and third party administrators in the country.
“H.I.G. has been an outstanding and committed partner to the PMSI management team. Together, we recognized the inherent value in PMSI's foundation, established a clear strategic vision and invested over $50 million in human capital, new programs, operating and IT infrastructure to successfully create a highly effective end-to-end client solution,” said Eileen Auen, CEO and Chairman of PMSI.
“PMSI marks H.I.G.'s second highly successful partnership with executives Eileen Auen, Jay Krueger and Steven Palmer. We were thrilled to partner with them and the rest of the PMSI management team to support their exceptional value-creation over the past five years,” commented Camilo Horvilleur, Principal of H.I.G. “Management flawlessly executed on its strategic initiatives and successfully re-positioned the Company to deliver a highly differentiated client value proposition. As a result, the Company generated phenomenal revenue and EBITDA growth, which resulted in an outstanding investment outcome for PMSI management, H.I.G. and its investors."
Founded in 1976, PMSI is a leader in developing solutions to control the growth of medical costs in workers’ compensation. As one of the nation’s largest and most experienced companies focused solely on workers’ compensation, PMSI delivers proven solutions for cost containment across the claims lifecycle. PMSI’s solutions for Pharmacy, Critical Care and Settlement Solutions deliver quantifiable results and improve the quality of care for injured workers. PMSI provides customers with innovation, focus, expertise, analytics and technology needed to successfully deliver workers’ compensation benefits. For more information, visit www.pmsionline.com or call 877.ASK.PMSI.
About H.I.G. Capital
H.I.G. is a leading global private equity investment firm with more than $13 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Paris and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.