CD&R, GS Capital Exit AssuraMed After Nearly 2.5 Years

AssuraMed is providing a relatively quick exit for Clayton, Dubilier & Rice and GS Capital Partners.

Cardinal Health today announced it agreed to buy AssuraMed for $2.07 billion. The deal includes $1.3 billion in new senior unsecured notes and the remainder in cash.

CD&R and GS Capital bought AssuraMed, which was known as HGI Holding, in October 2010. Twinsburg, Ohio-based AssuraMed is a direct-to-home medical supply distributor. The company produced about $1 billion in 2012 sales, Reuters reported. The transaction was valued at $850 million, according to news reports from that time.

CD&R and GS Capital contributed a combined $433 million equity at the time, according to Moody’s Investors Service.

It appears that the PE firms got back at least some of their equity. AssuraMed, in October, raised $760 million in new loans that it used to pay a dividend to its sponsors and refinance existing debt, Moody’s said. It’s unclear how much the PE firms received from the dividend.

The investment in AssuraMed came from CD&R’s eighth fund, which raised $5 billion in late 2009. The New York private equity firm is expected to hit the fundraising trail this year and is reportedly seeking the same amount, $5 billion, for its ninth fund.

GS Capital, the PE unit of Goldman Sachs, closed the investment stage of its last pool, a $20.7 billion 2007 fund, last year, according to Dow Jones LBO Wire. GS Capital will reportedly seek between $7 billion and $10 billion for its next pool.

CD&R declined comment. Calls to AssuraMed and GS Capital were not immediately returned.

Photo courtesy of Shutterstock

Leave a Reply

PEHUB Community

Join the 12506 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

PE HUB News Briefs

RSS Feed Widget

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget