Target: Sterling Healthcare
Sponsor: Beecken Petty O’Keefe & Co.
Seller: Resurgence Asset Management
Financial Adviser: Seller: Nexus Health Capital
Legal Adviser: Sponsor: Kirkland and Ellis LLP;
Terms were not released on the deal, brokered by Nexus Health Capital LLC. GE Healthcare Financial Services provided an asset-backed revolver and a term loan to finance the deal.
The firm has invested in this niche twice before. Earlier this year, it acquired from
Hospital management offers a great outsourcing opportunity because staffs nationwide are struggling to keep up with the number of patients with little or no insurance, said Greg Moerschel, a Beecken Petty O’Keefe partner. The trend “presents a great outsourcing opportunity, which is why companies like Sterling and others are growing quickly,” he said.
The market is replete with smaller outsourcers that Beecken Petty O’Keefe can target as add-on acquisitions, Moerschel said. The company generates $100 million in annual revenue. Moerschel believes Beecken Petty O’Keefe can triple that number in two years through acquisitions. The firm has been identifying potential add-on targets for the last five or six months, he said, and has reserved an additional $100 million of equity to support the company’s growth.
Beecken Petty O’Keefe made the investment from its third fund, a $650 million vehicle it is currently raising. Resurgent Asset Management did not return a call requesting comment.