PE-backed Propel buys HealthCare Services

Propel Insurance, which is backed by Flexpoint Ford, has acquired Knoxville, Tennessee-based HealthCare Services, a risk management and insurance consulting firm.

Propel Insurance, which is backed by Flexpoint Ford, has acquired Knoxville, Tennessee-based HealthCare Services, a risk management and insurance consulting firm. No financial terms were disclosed. Reagan Consulting acted as financial advisor to HCS on the deal.

PRESS RELEASE

CHARLOTTE, N.C., July 1, 2020 — Propel Insurance (“Propel”), a leading retail insurance agency and a portfolio company of Flexpoint Ford, announced today the acquisition of HealthCare Services (“HCS”), a boutique risk management and insurance consulting firm based in Knoxville, TN that specializes in serving senior care organizations.

The combined agency will generate in excess of $120 million of annual revenue in 2020 and will have 7 offices across the U.S. Together, Propel and HCS will continue to focus on providing tailored insurance solutions to its clients and offer exciting growth opportunities for its insurance carrier partners.
Propel’s acquisition of HCS will expand Propel’s existing senior living practice and confirm Propel as one of the leading healthcare specialists in the insurance industry. Propel and HCS will consolidate their expertise as they help clients manage risk across the country.

Mike Ferreira, Executive Director of Growth and Distribution for Propel, commented, “We have long admired HCS as a leader and provider of top-tier service to its clients in the senior living industry. We are thrilled to announce this partnership which reinforces our commitment to our growth strategy as we bolster our industry expertise through strategic acquisitions. The addition of Ed and his team will add a wealth of industry knowledge and solidify Propel as a national leader in the senior living industry.”

Ed Sims and Taylor Preston, Senior Partners at HCS, noted, “We are excited to partner with Propel and Richard Todd, who we’ve competed with for more than twenty years. Collaborating as a team going forward will offer many new opportunities for our senior living vertical. We share similar values and take pride in providing creative, tailored insurance solutions for our clients. High quality client service is the ultimate driver of organic growth. We are confident that our alignment with Propel will provide us with strategic resources to accelerate our existing momentum.”

The acquisition of HCS will deliver Propel’s goal of continuing to expand its geographic footprint with top industry talent. Knoxville and Charlotte will serve as Propel hubs in the southeast as we expand our national platform.

Richard Todd, Regional Director of Propel, added, “This acquisition allows us to expand our east coast presence with a group of highly respected risk management and insurance veterans. HCS will complement Propel’s new office in Charlotte, NC and will become the foundation for strong growth in the southeast. The combined agency will continue to provide unparalleled access to insurance markets and risk management resources to our clients and will provide a compelling opportunity for insurance advisors who are looking to join a national leader.”

Kirkland & Ellis LLP acted as legal counsel to Propel and Flexpoint Ford in connection with the transaction. Reagan Consulting acted as financial advisor to HCS and Morris Manning & Martin, LLP acted as legal counsel in connection with the transaction.

About Propel Insurance
Propel Insurance is one of the nation’s largest privately-owned insurance agencies and provides a broad array of property, casualty, risk management, workers’ comp, employee benefits, personal insurance and other products across North America. Propel is dedicated to helping businesses and individuals manage their insurance needs and find their momentum. For more information, visit www.propelinsurance.com

About Flexpoint Ford, LLC
Flexpoint Ford is a private equity investment firm that has raised more than $4.3 billion in capital and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm’s formation in 2005, Flexpoint Ford has completed investments in more than 30 companies across a broad range of investment sizes, structures and asset classes. Flexpoint Ford is headquartered in Chicago, Illinois. For more information about Flexpoint Ford, please visit www.flexpointford.com.