Healthcare survey company Press Ganey picks banks for IPO, say sources-Reuters

(Reuters) – Private equity-owned healthcare research firm Press Ganey has hired underwriters for a potential initial public offering (IPO) that could value it at more than $1 billion, including debt, according to people familiar with the matter.

Buyout firm Vestar Capital Partners Inc, the owner of Press Ganey, has assigned lead roles to Barclays Plc and Goldman Sachs Group Inc on the IPO, which is expected to come later this year, the people said on Wednesday.

The sources asked not to be identified because the matter is confidential. Press Ganey and Barclays declined to comment, while Goldman Sachs and Vestar did not respond to requests for comment.

Founded in 1985, South Bend, Indiana-based Press Ganey helps administer surveys for hospitals, medical practices and other healthcare providers to measure patient satisfaction. The company works with more than 10,0000 health care organizations, including more than half of all U.S. hospitals.

Vestar acquired Press Ganey from American Securities LLC in 2008. The company generates roughly $100 million in annual earnings before interest, tax, depreciation and amortization, according to the sources.

Vestar tried to sell Press Ganey in 2011 but pulled the sale process after it failed to meet its valuation expectations. Since then, the company has changed its top executives including bringing on healthcare veteran Patrick Ryan as CEO in 2012.