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

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