Progressive Medical and PMSI are merging. Kelso & Company will have a significant ownership stake in the combined company. Financial terms weren’t announced. StoneRiver Group, the seller, will continue to have a stake. Westerville, Ohio-based Progressive Medical provides workers’ compensation pharmacy benefits and ancillary services. PMSI, of Tampa, provides is focused on workers compensation and provides cost containment across the claims lifecycle.
MEMPHIS, Tenn., COLUMBUS, Ohio and TAMPA, Fla., Sept. 6, 2013 /PRNewswire/ — Progressive Medical and PMSI announced today that the two companies have entered into a definitive agreement to merge. The transaction is expected to close in the fourth quarter subject to receipt of regulatory clearance. The combined company, which will be led by Executive Chairman Eileen Auen from PMSI and Co-CEOs Emry Sisson and Tommy Young from Progressive Medical, will deliver comprehensive workers’ compensation pharmacy benefit management services including end-to-end pharmacy, ancillary and settlement solutions.
“Bringing together the resources and deep industry expertise of these two companies will enable the combined organization to continue to drive product innovation in the workers’ compensation marketplace while delivering operational and service excellence and ever improving clinical and cost containment services to our clients,” said Tommy Young, Co-CEO of Progressive Medical.
Eileen Auen, Chairman and CEO of PMSI, stated “The PMSI leadership team is delighted to partner with Progressive Medical. We will continue to deliver customized solutions to our clients, and I am personally excited about working closely with the combined team to bring unique solutions to our customers.”
“This merger will drive increased efficiency in the workers’ compensation business,” according to Emry Sisson, Co-CEO of Progressive Medical. “We will strategically leverage the capabilities of the combined organization to bring even greater value to our customers.”
Funds managed by Kelso & Company have agreed to acquire a significant ownership stake in the combined company. StoneRiver Group, the controlling shareholder of Progressive Medical, will continue to be a significant shareholder in the combined business.
About Progressive Medical
Progressive Medical is a leading workers’ compensation pharmacy benefits and ancillary services provider whose responsibility is to make a difference. Through the delivery of PBM and ancillary services programs combined with unique third-party billing capabilities, evidence-based clinical programs, advanced clinical analytics, proactive government affairs and operational excellence, the company is accelerating change by providing more control and better financial and clinical outcomes for its clients. Visit www.progressive-medical.com to learn more.
Founded in 1976, PMSI is a leader in developing solutions to control the growth of medical costs in workers’ compensation. As one of the nation’s largest and most experienced companies focused solely on workers’ compensation, PMSI delivers proven solutions for cost containment across the claims lifecycle. PMSI’s solutions for Pharmacy, Critical Care, and Settlement Solutions deliver quantifiable results and improve the quality of care for injured workers. PMSI provides customers with innovation, focus, expertise, analytics and technology needed to successfully deliver workers’ compensation benefits. For more information, visit www.pmsionline.com or call 877.ASK.PMSI.
Kelso & Company is one of the oldest and most established firms specializing in private equity. Since 1980, Kelso has invested in over 120 companies in a broad range of industry sectors with aggregate initial capitalization at closing of over $45 billion. Kelso is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital. The firm’s Principals and employees are collectively the single largest investor in each of Kelso’s four most recent funds. For more information, please visit http://www.kelso.com
About StoneRiver Group
StoneRiver Group, L.P. is a leading provider of outsourcing solutions to the insurance industry. StoneRiver Group owns Progressive Medical as well as several other companies operating in the insurance outsourcing industry. StoneRiver Group is owned by funds managed by Stone Point Capital and Fiserv, Inc.