Private equity firm HIG Capital has completed the sale of its portfolio company PMSI to an affiliate of Kelso & Company and StoneRiver Group.
Simultaneous with the sale, the company will be merged with Progressive Medical to create a provider of customized and clinically-focused solutions to manage pharmacy benefit management (PBM), durable medical equipment, home healthcare, transportation, translation and Medicare compliance solutions for workers’ compensation industry.
After acquiring PMSI in 2008 from AmerisourceBergen, HIG partnered with management to invest significant resources in PMSI to rebuild its infrastructure and transform its service offering.
The transaction adds to HIG’s track record of investing in the workers’ compensation and healthcare services industries.
Based in Tampa, Florida and founded in 1976, PMSI is one of the nation’s largest companies focused on workers’ compensation cost containment.
“HIG has been an outstanding and committed partner to the PMSI management team. Together, we recognised the inherent value in PMSI's foundation, established a clear strategic vision and invested over USD50m in human capital, new programs, operating and IT infrastructure to successfully create a highly effective end-to-end client solution,” says Eileen Auen, chief executive and chairman of PMSI.
“PMSI marks HIG'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,” says Camilo Horvilleur, principal of HIG. “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, HIG and its investors."