Palladium Equity Partners has called off the sale of Jordan Health Services, three sources said.
Palladium pulled the deal after receiving low bids, one of the sources said. Two others said the deal was busted. Jordan is now seeking financing for a recap, one banker said.
[contextly_sidebar id=”ih8aAMj8HBXzvp74nX3YHU2zcn3OuRoM”]“There is no sale of Jordan right now and we are not looking for a recap,” said Scott Herman, Jordan’s president.
Earlier this year, Palladium put Jordan Health up for sale, The Wall Street Journal reported.
Jefferies advised on the auction, the three sources said. Mount Vernon, Texas-based Jordan provides home health services to pediatric and adult patients. The company was expected to fetch from $300 million to $400 million, the WSJ said.
Palladium’s investment dates back to December 2010 when the PE firm acquired Jordan. The investment came from Palladium’s third pool, a 2005 vintage fund that collected $775 million. Palladium, earlier this year, closed its fourth fund at $1.14 billion.
Fund III is generating an IRR since inception of 20.42 percent as of March 31, according to performance data from the California State Teachers’ Retirement System. Fund IV, a very young fund, 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 equity to $150 million equity per deal. So far this year, Palladium has sold has been Teasdale Foods, Sahale Snacks and ABRA Auto Body & Glass.
Executives for Palladium and Jefferies declined comment.
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