Financial terms of the deal, which closed today, were not announced. General Atlantic is lead investor, a GA spokeswoman says. News of the deal was reported by peHUB yesterday.
Excellere, a private investment firm, acquired a majority stake in MedExpress via a recap in 2007. Company management owned the balance.
MedExpress’s management will continue in their positions and will continue to own a stake, says Erich Lipphardt, the company’s vice president of development and marketing. One banker valued the sale at roughly $450 million.
MedExpress, of Morgantown, W.V., operates 42 outpatient urgent care centers in Colorado, Florida, Pennsylvania and West Virgina. The centers can treate moderate to severe ailments like stitches, digital x-rays and minor surgical procedures. The clinics can handle roughly 85% of patients who typically visit an emergency room, Lipphardt says. Services are quicker than in an emergency room (most needs are met in under an hour) and cheaper. MedExpress typically charges one-fifth to one-third less than an emergency room visit. “About 70% of visits to the ER can be treated in a lower-cost, more appopriate setting like MedExpress,” he says.
“MedExpress offers patients increased convenience and payors significant savings, all without any sacrifice in quality,” said Jonathan Korngold, a General Atlantic MD and head of the firm’s health care group, in a statement.
MedExpress was not shopped. Instead, GA and Sequoia approached MedExpress back in May, Lipphardt says.
Excellere, of Denver, targets the lower middle market and invests in companies generating EBITDA of between $4 million and $15 million. The MedExpress investment came from its first fund which raised $265 million in 2007.
Jefferies & Co. advised Excellere/MedExpress. UBS provided financial advice to GA and Sequoia.
Officials for Excellere declined comment. Sequoia couldn’t be reached for comment.