Target: Trover Solutions
Price: $60 million at close, plus $7 million in future distributions and $45 million in past dividends
Multiple: 4.2x, with a 50 percent IRR
Sponsor: ABRY Partners
Seller: Tailwind Capital
Financial Advisers: BMO Capital Markets, William Blair
The New Year seems bright for
Tailwind sold Trover in late December to
The sale of Trover, which provides insurance subrogation services, generated a 4.2x return for Tailwind and an IRR of 50 percent. Tailwind received about $112 million in proceeds, including dividends, the document said.
“Our long standing partnership with the Trover management team succeeded on all three levels,” said Doug Karp, Tailwind’s co-CEO and managing partner. “The company grew its business and expanded into new lines. It generated exceptional returns for investors, management and employees. And it provided exceptional services to its customers.”
Louisville, Ky.-based Trover represents health insurance companies and recovers accident-related medical benefits for clients on behalf of their insureds. Basically, Trover helps insurance firms get reimbursed for costs if a third party is responsible, a source said. The company has more than 650 employees.
Trover has had an energized history since its founding in 1988 as a
Trover’s fortunes declined in 2003 when it lost its largest customer and the company’s market cap dropped significantly, the letter said. One year later, in 2004, Tailwind injected $27 million in Trover for an 88 percent stake, the letter said. Under Tailwind, Trover’s EBITDA grew from $10 million to about $21 million. Trover was sold on Dec. 28 to ABRY.
The month of December saw two other deals for Tailwind. The firm acquired the
For the sale of Trover, Tailwind received financial advice from Dirk Leasure, Brett Skolnik, Michael Neuburger of BMO Capital Markets and William Blair’s John Kibler and Karl Palatz.