H.I.G. Capital sells MagnaCare Holdings to investor group
Published on January 20, 2014 at 9:08 AM
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 MagnaCare Holdings, Inc. ("MagnaCare" or the "Company") to an investor group led by an affiliate of Goldman Sachs, Pamplona Capital Management, and the MagnaCare Management Team.
Based in New York, NY, MagnaCare is a leading health plan services company offering a broad range of healthcare administrative services and access to a proprietary provider network of approximately 95,000 individually contracted physicians, hospitals and other healthcare providers. MagnaCare currently provides services to approximately 850,000 members and manages approximately $1.5 billion of annual health care expenses.
After acquiring MagnaCare in 2010, H.I.G. partnered with management and invested significant resources in the Company to augment its infrastructure and further expand its service offering into the workers compensation and commercial markets. Through these investments, MagnaCare has grown to be one of the leading full service healthplan providers in the NY/NJ markets, generating 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 healthcare services industry.
"H.I.G. has been an outstanding and committed partner to the MagnaCare management team. Together, we established a clear strategic vision and made significant investments to build out and strengthen our provider network, enhance our corporate infrastructure, and introduce a wide range of new products and services to develop a comprehensive solution for the self-insured market," said Joseph Berardo Jr., CEO and President of MagnaCare.
"We have been very fortunate to be able to partner with Joe Berardo and the executive team at MagnaCare. They have successfully executed on a number of strategic initiatives and significantly grown the business over the course of our ownership," commented Tenno Tsai, Managing Director of H.I.G. "MagnaCare has been a successful investment for management, H.I.G. and our investors. We look forward to watching the Company's continued success in the future."