Charterhouse Buys Chamberlin Edmonds
CIT Healthcare provided an undisclosed amount of senior debt for the roughly $100 million acquisition.
June 9, 2008
Charterhouse Group, a New York private equity firm, has led an investor group to take control of hospital eligibility services provider Chamberlin Edmonds & Associates (CEA) in a deal valued at more than $100 million, according to sources.
CIT Healthcare provided an undisclosed amount of senior debt for the acquisition by the New York private equity firm, while GE Healthcare Financial Services served as an arranger and administrative agent on the financing. As part of the deal, Charterhouse teamed up with Highlander Partners and MTS Health Investors to fund its purchase of the Atlanta-based company, while CEA founder Judith Starkey, chief executive Ulrich Brechbuhl and executive vice presidents Kirk Reid and Brian Sadler will remain minority shareholders in the business.
A 22-year-old company with more than 650 employees and a presence in 27 states as well as six regional offices throughout the US, CEA assists uninsured hospital patients with complex application processes to help secure payment for medical care expenses from government and community sources. It has contracts with more than 160 customers.
“Without CEA’s services, many hospitals would forego much needed financial resources that help sustain their ability to provide critical healthcare services to communities across the country,” said C. Taylor Cole, Jr., a partner at Charterhouse Group that announced the deal on Thursday.
CEA will fund its growth strategy with equity from the investor group, according to Ulrich Brechbuhl, CEO of Chamberlin Edmonds & Associates. “With the capital resources and industry knowledge from Charterhouse, Highlander and MTS, we are now positioned to generate substantial organic growth, expand our service offerings and pursue strategic acquisitions.”
Additionally, Charterhouse operating partner Christopher Garcia, an executive with healthcare and business services experience, will serve as chairman of CEA’s board. Garcia has served as chairman of three Charterhouse portfolio companies in the last five years: Lason, Camelot and Upstream Rehabilitation.
Proskauer Rose attorney Stephen Rubin was counsel to Charterhouse, while Robert W. Baird bankers Bill Suddath, Andrew Snow, David Wierman and Liane Braddock provided financial advice to CEA shareholders.
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