Leonard Green & Partners and Ares Management has acquired CHG Healthcare Services, a healthcare staffing firm based in Salt Lake City. CHG is currently majority-owned by funds affiliated with J.W. Childs Associates. Terms of the deal were not released. CHG Healthcare said that existing management would retain “a significant equity interest” in the company following the deal.
CHG Healthcare Services, a leading healthcare staffing firm based in Salt Lake City, announced today that Leonard Green & Partners and Ares Management LLC have agreed to acquire the company with existing management retaining a significant equity interest. CHG is currently majority-owned by funds affiliated with J.W. Childs Associates, L.P. The transaction is anticipated to close by the end of 2012, subject to customary closing conditions, and terms of the transaction were not disclosed.
CHG is one of the largest providers of healthcare staffing in the U.S., and is the largest locum tenens (temporary physician) staffing firm in the nation. The company is comprised of more than 1,400 people in seven offices nationwide and is recognized as a top employer in the U.S., including being ranked No. 9 on FORTUNE magazine’s list of “100 Best Companies to Work For” in America.
“We appreciate the positive, successful partnership we’ve enjoyed with J.W. Childs for the last six years, and look forward to continuing our growth with our new partners at Leonard Green and Ares,” said Michael Weinholtz, CEO of CHG.
John Baumer, Partner at Leonard Green commented, “We’re excited to partner with CHG’s management team and Ares and look forward to supporting the next phase of the Company’s growth and profitability.”
“We are delighted to join Leonard Green in supporting CHG’s talented leadership team as long-term investors in the company,” said Bennett Rosenthal, Senior Partner at Ares Management. “We believe CHG’s dedication to delivering high-quality and timely solutions for its customers will position it for continued growth.”
“We have truly enjoyed our six-year partnership with the entire CHG management team and organization. We wish them continued success in building upon their leadership position with terrific new partners in Leonard Green and Ares,” said David Fiorentino, Partner at J.W. Childs Associates.
About CHG Healthcare Services
Founded in 1979, CHG Healthcare Services is one of the nation’s oldest and largest healthcare staffing firms. The company provides a comprehensive service offering that includes temporary and permanent placement of physicians, allied health professionals and nurses to hospitals and healthcare organizations in all 50 states through such trusted brands as CompHealth, Weatherby Healthcare, RN Network, and Foundation Medical Staffing. The company has won several awards including inclusion on FORTUNE magazine’s list of “100 Best Companies to Work For” in America. To learn more about CHG, visit www.chghealthcare.com.
About Leonard Green
Leonard Green & Partners, L.P. is one of the nation’s preeminent private equity firms with over $15 billion of private equity capital raised since inception. Founded in 1989, the firm has invested in 62 companies with aggregate value of $54.6 billion in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Based in Los Angeles, California, LGP invests in established companies that are leaders in their markets. For more information, please visit www.leonardgreen.com.
About Ares Management
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $54 billion of committed capital under management and over 540 employees. The firm is headquartered in Los Angeles with professionals also located across the United States, Europe and Asia and has the ability to invest in all levels of a company’s capital structure – from senior debt to common equity. The firm’s investment activities are managed by dedicated teams in its Private Equity, Private Debt, Capital Markets and Commercial Real Estate investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. The synergies from this multi-asset class strategy provides investment professionals with insights into industry trends across the globe, access to significant deal flow and the ability to assess relative value. The Ares Private Equity Group pursues majority or shared control investments, principally in middle market companies with strong business franchises and world class management teams. For more information, visit www.aresmgmt.com.
About J.W. Childs Associates
J.W. Childs is a Boston-based private equity firm focusing on investing in middle market growth companies. Since inception in 1995, J.W. Childs has invested more than $3 billion of equity capital in 41 platform companies including Advantage Sales & Marketing, Bass Pro Shops, Beltone Electronics, Brookstone, Esselte, Joseph Abboud, Mattress Firm, Meow Mix, NutraSweet, Pinnacle Foods, Sunny Delight, The Tile Shop and W/S Packaging.