Blue Wolf wins auction for Palladium-backed Jordan Health: sources

Blue Wolf Capital Partners won an auction for Jordan Health Services after recently submitting a final bid, two sources said.

“Blue Wolf was the last man standing,” one of the sources said. Acon Investments LLC also submitted a final bid, the sources said.

Palladium Equity Partners put Jordan Health Services up for sale in the fall, according to five bankers and a private equity executive.

Raymond James advised on the process, the people said. Mount Vernon, Texas-based Jordan provides home health services to pediatric and adult patients.

Palladium last tried to sell Jordan in 2014 but ended up pulling the auction that November after receiving low bids, Buyouts reported. At that time Palladium was looking for bids between $300 million and $400 million, Buyouts said.

Jordan Health is likely bigger now, one of the banking sources said. It’s unclear what price the company was seeking. One of the banking sources estimated Jordan would likely sell at the top of the $300 million to $400 million range.

Palladium’s investment dates back to December 2010 when the PE firm acquired Jordan. The investment came from Palladium’s third pool, a 2005 vintage fund that collected $775 million. Palladium closed its fourth fund at $1.14 billion in 2014.

Palladium Equity Partners III LP has generated a 19.95 percent IRR since inception as of March 31, according the California State Teachers’ Retirement System, an LP in the fund. Palladium’s Fund IV produced a 9.13 percent IRR since inception, CalSTRS said.

New York-based Palladium invests in lower-middle-market companies, particularly in founder-owned enterprises serving the Hispanic market. The firm typically invests from $50 million to $150 million equity per deal.

Executives for Palladium and Acon declined comment. Blue Wolf, Jordan and Raymond James could not be reached for comment.

Action Item: Contact Palladium at 212-218-5150

Photo of Blue Wolf courtesy of Shutterstock