Centerbridge Partners has agreed to acquire American Renal Holdings, a national provider of kidney dialysis services, from Pamlico Capital (fka Wachovia Capital Partners). No financial terms were disclosed for the deal, which is expected to close next month.
American Renal Holdings (“ARH”), through its affiliate, American Renal Associates, a national provider of kidney dialysis services, and Pamlico Capital announced today that affiliates of Centerbridge Partners, L.P. (“Centerbridge”) entered into an agreement to acquire ARH in partnership with ARH management. ARH and its physician partners own and operate 83 dialysis clinics treating more than 5,500 patients across the United States.
“We are very excited to enter this next stage of our company’s growth in partnership with Centerbridge, a leading private equity firm,” said Joseph Carlucci, Chief Executive Officer and Co-Founder of ARH. “Going forward, ARH’s strategy will remain unchanged as our staff and physician partners continue to provide excellent care to the patients that choose our centers and build on our best-in-class reputation for outstanding clinical care in dialysis services.”
Steven Silver, Senior Managing Director of Centerbridge, said “We look forward to our partnership with ARH, a growing firm with a strong business model that provides superior dialysis services to its patients. We believe that ARH is uniquely positioned to benefit from the dynamic state of our nation’s healthcare system and are excited about ARH’s strong prospects.”
Neal Morrison, Partner of Pamlico Capital (formerly known as Wachovia Capital Partners), ARH’s lead institutional investor and largest shareholder, said “Our successful partnership with management, which began in 2004, is evidenced by ARH’s growth into one of the largest dialysis providers in the country focused exclusively on partnerships with physicians, while providing best-in-class patient care. We believe this company is on the path for continued success and we wish them well.”
The closing of the transaction is subject to regulatory approvals and other customary conditions, and is expected to close in the second quarter of 2010.
ARH and Pamlico Capital were advised by Alston & Bird LLP (legal advisor) and McGuire Woods LLP (healthcare regulatory advisor). BofA Merrill Lynch and Wells Fargo Securities served as financial advisors to ARH.
Centerbridge was advised by Simpson Thacher & Bartlett LLP (legal advisor) and McDermott Will & Emery (healthcare regulatory advisor). Barclays Capital served as a financial advisor to Centerbridge.
About American Renal Holdings
American Renal Holdings, through its affiliate American Renal Associates, is a leading developer, owner and operator of outpatient kidney dialysis facilities in partnership with nephrologists throughout the United States. American Renal Associates is the sixth largest provider of outpatient kidney dialysis services in the nation and currently operates 83 facilities that treat more than 5,500 patients across the United States.
Centerbridge Partners was established in 2006 and currently has approximately $11 billion in assets under management investing across multiple strategies, including private equity and distressed credit. The firm is dedicated to partnering with world class management teams to invest throughout a company’s capital structure and to employ various strategies to help companies achieve their operating and financial objectives. Centerbridge’s limited partners include many of the world’s most prominent financial institutions, university endowments, pension and sovereign wealth funds, and charitable trusts.
About Pamlico Capital
Pamlico Capital, formerly known as Wachovia Capital Partners, was founded in 1988 and has invested in excess of $3.5 billion in over 200 companies since its inception. Pamlico Capital seeks growth equity and buyout investments up to $100 million alongside proven management teams in its target industries, which include business and technology services, communications and healthcare. The firm, based in Charlotte, NC, currently manages over $2 billion in assets. Please refer to www.pamlicocapital.com for additional information.