peHUB has learned that ABRY Partners, which owns Executive Health, sent books out about six weeks ago. They targeted all the big buyout shops, or at least those that could write equity checks of between $400 million and $700 million. “It’s a big-sized check that would attract the interest of the biggest PE guys,” a buyout executive tells me.
Firms such as the Blackstone Group, Warburg Pincus, TPG and THL Partners are all players in the healthcare space and are expected to be interested in Executive Health. For example, Blackstone owns Team Health, which provides outsourced physician staffing and administrative services, while Warburg has been investing in healthcare services since 1973.
It also helps that Executive Health is very profitable. The medical outsourcer, which is based in Newtown Square, Pa., has EBITDA of between $100 million and $125 million. A sale is expected to fetch from $1 billion to $1.2 billion, the source said.
The auction is in the late rounds and is expected to go to a financial sponsor. If Executive Health is sold to a PE firm, it would mark the third time the company was owned by a buyout shop. Executive Health was founded in 1997. In 2006, WestView Capital Partners bought a minority stake which it sold in 2007 to ABRY via a recap. It’s not clear how much ABRY owns only that their holding is “sizeable.” Management owns the rest.
“This will make generations of wealth for the owners,” the source said.
Officials for Warburg and TPG declined comment.