Hospital staffing company CHG Healthcare Services has hired Goldman Sachs Group to advise on a potential sale that could fetch more than $1 billion, writes Reuters. CHG Healthcare was acquired by Boston-based private equity firm J.W. Childs Associates and CHG chief executive Mike Weinholtz for an undisclosed sum five years ago, reports Reuters.
Reuters – Hospital staffing company CHG Healthcare Services Inc has hired Goldman Sachs Group (GS.N) to advise on a potential sale that could fetch more than $1 billion, according to two people familiar with the matter.
A sale would come more than five years after CHG Healthcare was acquired by Boston-based private equity firm J.W. Childs Associates and CHG Chief Executive Mike Weinholtz for an undisclosed sum.
Salt Lake City, Utah-based CHG provides hospitals and healthcare organizations across the United States with temporary or permanent staffing of physicians, nurses and other health professionals.
CHG has around $100 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and owners hope to get 11 times EBITDA in a sale, according to the people familiar with the matter.
The auction, which is in the second round, has attracted interest mostly from private equity firms, the people said.
The sources asked not to be named because the matter is not public. Representatives of CHG and Goldman did not immediately respond to requests for comment.
Founded in 1979, CHG Healthcare is one of the country’s oldest and largest healthcare staffing firms, and operates through brands such as CompHealth, Weatherby Healthcare, RN Network and Foundation Medical Staffing.
The company was the first to introduce the concept of temporary or traveling physicians in the United States as a way to help doctors practicing in rural areas take breaks away from their country offices, according to its website.
The so-called traveling physicians provide healthcare facilities with a cost-effective option for filling staffing gaps, allowing them to offer patient care without having to hire additional full-time employees.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York; editing by Carol Bishopric)