Palladium pulled the deal after receiving low bids, one of the sources said. Two others said the deal was busted.
One banker said Jordan is now seeking financing for a recap, but Jordan President Scott Herman said that was not true. “There is no sale of Jordan right now and we are not looking for a recap,” Herman said.
Palladium put Jordan Health up for sale earlier this year, according to The Wall Street Journal. The sale was expected to fetch $300 million to $400 million, the WSJ said.
Jefferies advised on the auction, the three sources said.
Jordan, based in Mount Vernon, Texas, provides home health services to children and adults.
Palladium acquired Jordan in December 2010. The investment came from Palladium’s third pool, a 2005 vintage fund that collected $775 million. Fund III is generating an IRR since inception of 20.42 percent as of March 31, according to the California State Teachers’ Retirement System, an investor in the fund.
Palladium closed its fourth fund at $1.14 billion earlier this year. Fund IV is producing a negative IRR since inception of 2.14 percent, CalSTRS said.
New York-based Palladium invests in lower-middle-market companies, particularly in founder-owned enterprises serving the Hispanic market. The firm typically invests from $50 million to $150 million equity per deal. So far this year, Palladium has sold Teasdale Foods, Sahale Snacks and ABRA Auto Body & Glass.
Executives for Palladium and Jefferies declined comment.