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GI Partners sells Plum Healthcare to Bay Bridge Capital

Mid-market private equity firm GI Partners has sold its portfolio company, Plum Healthcare Group, to Bay Bridge Capital Partners.



The sale of Plum generated a return of approximately three times invested capital for limited partners in GI Partners Fund II.

Plum’s current portfolio consists of 50 skilled nursing facilities and five home health and hospice agencies located in strategic geographic clusters throughout California, Utah, and Arizona. Plum serves over 5,000 medically-complex patients every day.

The company was acquired by GI Partners in 2006 and, during the firm’s six-years of ownership, has acquired and turned around 39 skilled nursing facilities. Under GI’s stewardship, Plum has strengthened facility-level resources, clinical and administrative consulting services, and invested heavily in clinical quality and IT infrastructure. Plum has also diversified geographically by moving in to two additional states, and has developed new post-acute service lines by entering into the home health and hospice markets.

As a result of these and other initiatives, Plum has grown revenue and EBITDA at a 32 per cent and 30 per cent compounded annual growth rate, respectively, over the last five years.

Howard Park, a managing director of GI Partners, says: "We are extremely pleased with everything we were able to accomplish working closely with Plum management over the past few years, despite the challenging healthcare reimbursement environment. The unique human touch Plum brings to a healthcare services business has made it a rewarding investment. Our initial investments in clinical quality, staffing, infrastructure, IT, and key personnel have really positioned Plum to generate success over the next phase of growth that they are about to embark on with Bay Bridge. We look forward to closely following their future achievements."

Since founding Plum in 1999, co-chief executives Mark Ballif and Paul Hubbard have been at the helm of Plum and will continue in this capacity under Bay Bridge’s ownership.

"Our partnership with GI demonstrates how investors and providers can come together to provide better patient care. We have been able to achieve outstanding performance by investing in great people and superior clinical systems. These make a huge difference in our patients’ lives," Balliff says. "GI helped us use our deep commitment to people and clinical excellence as a springboard to professionalise our unique approach and grow.  It has been a pleasure to work with such fine people and thought-partners."

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