Vestar Capital Partners Closes Fund VII with $1.1 Billion in Capital Commitments
New York, NY – February 3, 2020 – Vestar Capital Partners, a leading U.S. middle-market private equity firm, announced today that it has closed Vestar Capital Partners VII, L.P. (“Vestar VII”) with $1.1 billion in capital commitments.
Vestar VII exceeded its $1 billion target and includes a commitment of $100 million from the General Partner and its partners and affiliates. Vestar employs a thematic approach to generate investment opportunities, leveraging its deep industry knowledge and experience to help drive transformative value creation in its three key sectors. The fund seeks to invest in profitable and growing companies in the Consumer, Business & Technology Services, and Healthcare sectors, with a focus on family- and founder-owned opportunities.
Vestar VII has already completed two platform investments to date – IRI, a global provider of big data, predictive analytics, and forward-looking insights for consumer, retail, and media companies, and Simple Mills, a leading innovative and disruptive better-for-you food brand.
Commitments came from a select group of institutional investors, a substantial majority of whom have been previous investors with the firm, and encompass a diverse mix of investors from North America, Europe, and the Middle East, including leading charitable foundations, public and corporate pensions, financial institutions, funds-of-funds, and family offices. The firm’s prior fund, Vestar Capital Partners VI, closed at $814 million in 2013, and has made 12 investments and 17 add-on acquisitions. Since its inception, the firm has raised seven private equity funds, investing $8 billion across 83 companies with a total value of approximately $50 billion.
“We are gratified by the support from many long-term investors in Vestar VII, which we believe is recognition of our successful strategy and long-term performance,” said Dan O’Connell, CEO and Founder. “Vestar’s talented investment team consistently leverages deep sector relationships to uncover overlooked opportunities, while our Vestar Resources team works closely with company management to deliver operational improvement. We thank our investors for their continued support.”
Monument Group served as placement agent for Vestar VII, and Kirkland & Ellis LLP served as legal advisor to Vestar.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services, and Healthcare. Since its founding in 1988, Vestar funds have invested $8 billion in 83 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
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Vestar Capital Partners Names Pedro Guimaraes as Senior Advisor
New York, NY – January 29, 2020 – Vestar Capital Partners (“Vestar”), a leading middle-market private equity firm, today announced that Pedro Guimaraes has joined the firm as a Senior Advisor focused on the Testing, Inspection, and Certification (“TIC”) sector.
Mr. Guimaraes brings more than 30 years of leadership experience in the TIC sector, having held an array of positions at Bureau Veritas, most recently as CEO of its North American Operating Group. During more than three decades with Bureau Veritas, he held nine executive positions and led large multicultural and multinational teams across North America, Latin America, Europe, and the Asia-Pacific region.
Mr. Guimaraes will work closely with Vestar’s Business & Technology Services team to actively pursue new platform opportunities in the TIC sector across a variety of end markets.
“We have had a strong interest and investment thesis in the TIC sector for some time now, and we are thrilled to partner with Pedro to actively pursue investments in this attractive segment,” said Nikhil Bhat, Vestar Managing Director and Co-Head of Business & Technology Services. “His extensive network, experience, and operational expertise will be invaluable to our efforts in sourcing and executing new opportunities, as well as adding value to our investments, in this exciting and high growth market.”
“The Senior Advisor program has been an important part of Vestar’s go-to-market strategy since our inception, as these talented leaders help our management team partners invest behind their highest priority growth initiatives,” said Rob Rosner, Vestar Founder and Co-President. “We could not be more excited to welcome Pedro to these ranks, and we look forward to working with him on new opportunities.”
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business & Technology Services. Since its founding in 1988, Vestar funds have invested $8 billion of capital in more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
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Healthgrades Acquires Evariant
DENVER--(BUSINESS WIRE)--Healthgrades, the leading resource that connects consumers, physicians and health systems, today announced it has acquired Evariant, a leading healthcare consumer and physician engagement company. With the combination of these two market leaders and innovators, Healthgrades will offer the most comprehensive end-to-end engagement platform in the healthcare industry, enhancing the company’s value proposition for its combined base of 2,000+ hospitals and life sciences customers.
Healthgrades’ products and services enable physicians and health systems to optimize growth through smarter consumer acquisition, patient retention and physician network utilization strategies. The combined offering includes:
- the most advanced healthcare customer relationship management (HCRM) solution;
- a leading physician relationship management (PRM) solution;
- an Engagement Center application that transforms call centers into profit centers;
- a web content management solution (CMS) supporting an integrated digital experience;
- a full-service healthcare marketing agency and strategic services arm focused on accelerating ROI;
- and the most comprehensive consumer website to help educate consumers and connect them with a physician.
This integrated technology platform will leverage more than 30 years of experience with predictive analytics and patient communications to engage consumers at every step of the patient journey, redefining their relationships with healthcare providers in the digital age.
Terms of the transaction were not disclosed. Evariant shareholders will retain a minority stake in the combined company and will have a representative on the Board of Directors. Healthgrades is a Vestar Capital Partners portfolio company.
“Following the successful integration of Influence Health, this acquisition further positions Healthgrades to lead the industry in improving connections between consumers and providers across multiple solutions and media channels,” said Rob Draughon, CEO, Healthgrades. “Since the beginning of 2019, Healthgrades has significantly expanded its product suite, added exciting new talent, and enhanced its ability to innovate, invest and grow. Our goal remains clear: to better inform consumers along their health journey, powered by data and insights, improving the overall care experience and ultimately driving improved health outcomes.”
“At Evariant, we have successfully partnered with health systems to achieve high-value service line growth, extend patient lifetime value and improve network utilization and planning,” said Clay Ritchey, CEO, Evariant. “We are excited to become a part of Healthgrades and look forward to the significant opportunities ahead as the scale of our combined companies will fuel expansion of our products, services and support resources to benefit our collective client base.”
“Healthgrades is a pioneer in healthcare information, and with the addition of Evariant, the company will become the most comprehensive healthcare communications platform in the industry,” said Norm Alpert, chairman of Healthgrades and co-president of Vestar. “Merging the best features of both companies creates an unrivaled solution set for health systems to engage with consumers, patients, providers and other constituencies on a new level.”
MTS Health Partners, L.P. acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Healthgrades. Piper Sandler served as financial advisor and Goodwin Procter LLP served as legal advisor to Evariant. Financing for the transaction was provided by CRG, L.P. and CIBC Bank USA.
About Evariant
Evariant, the healthcare consumer and physician engagement company, enables providers to optimize growth through smarter patient acquisition and retention. Our customers achieve indisputable value through high-value service line growth, improving provider network utilization and planning, and extending patient lifetime value. The Evariant Patients for Life Platform™ delivers actionable intelligence that enables healthcare providers to execute best next actions to find, guide and keep patients for life. For more information, visit evariant.com.
About Healthgrades
Healthgrades is dedicated to empowering stronger and more meaningful connections between patients and their healthcare providers. At Healthgrades, we help millions of consumers each month find and schedule appointments with their provider of choice. With our scheduling solutions and advanced analytics applications, we help our health system and life sciences clients cultivate new patient relationships, improve patient access, and build customer loyalty. For more information, visit: https://partners.healthgrades.com. At Healthgrades, better health gets a head start.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business & Technology Services. Since its founding in 1988, Vestar funds have invested $8 billion in more than 80 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
Woodstream Acquires Dynamic Solutions Worldwide, Maker of DynaTrap Insect Traps
LANCASTER, Pa., Nov. 18, 2019 /PRNewswire/ -- Woodstream Corporation, a leading manufacturer and marketer of branded pest and animal control product as well as lawn and garden products, today announced that it has acquired Dynamic Solutions Worldwide LLC, maker of DynaTrap insect traps. Terms of the transaction were not disclosed. Woodstream is a portfolio company of Vestar Capital Partners.
Based in Milwaukee, Wisconsin, DynaTrap is a leading provider of insect traps with both indoor and outdoor applications. Introduced in 2006 by Juan Rocha, DynaTrap has grown to be the number-one insect trap company in North America, with its products sold at leading home and hardware retailers including Home Depot, Costco, Sam's, Bed Bath & Beyond, Amazon, and Ace Hardware, as well as on QVC, HSN and online retailers. DynaTrap's insect traps, which adhere to the highest quality and safety standards, protect against mosquitoes and other flying insects without the use of pesticides.
"The addition of DynaTrap not only adds a highly regarded and successful product line to Woodstream's existing offerings, but it also introduces us to additional blue-chip clients which complement our current roster of world-class customers," said Miguel Nistal, CEO of Woodstream. "Demand for DynaTrap insect traps has never been higher as new and more potent strains of mosquito viruses develop each year. We are excited to welcome the DynaTrap team, and we remain on the lookout for additional strategic acquisitions that will supplement Woodstream's strong organic growth."
"Woodstream is the perfect home for DynaTrap," said Mr. Rocha, DynaTrap president. "There is a natural synergy between our companies, and through this combination, DynaTrap's products will be introduced to a significant group of new customers. I look forward to helping Miguel and his team integrate the two companies."
About Woodstream
Woodstream is a global manufacturer and marketer of a broad portfolio of branded pest control and lawn & garden products, under brands such as Victor®, Terro®, Perky-Pet®, Havahart®, Safer®, Sweeney's® and Mosquito Magnet®, among others. The company's products, which have leading market share positions within their respective segments, are sold at more than 100,000 retail locations and to professional pest control providers throughout the United States, Canada, the United Kingdom, and other international markets. For more information, please visit https://www.woodstream.com/.
About Dynamic Solutions Worldwide
Dynamic Solutions Worldwide designs, manufactures, and markets innovative and environmentally friendly products for the home and the outdoor living environment. The company's award-winning DynaTrap insect trap is the market leader in the insect control category, protecting against mosquitoes and other flying insects without the use of pesticides. For more information, please visit https://dynatrap.com/
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services. Since its founding in 1988, Vestar funds have invested $8 billion of capital in more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
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SOURCE Woodstream Corporation
Vestar Capital Partners to Make Minority Investment in Simple Mills
NEW YORK, NY—October 7, 2019 – Vestar Capital Partners today announced that it is has entered into an agreement to make a minority investment in Simple Mills, the number one clean-label baking mix and cracker brand and number three cookie brand in the natural channel. Vestar’s involvement will help Simple Mills advance its new product development, brand-building and distribution expansion activities. Terms of the transaction, which is expected to close in October 2019, were not disclosed.
Based in Chicago, Simple Mills is a driving force in transforming the center grocery aisle with innovative whole-food snack alternatives in categories traditionally lacking better-for-you options. The company’s products are distributed in more than 16,000 stores ranging from Whole Foods to Kroger, Publix, Safeway, and Target. Consumers increasingly demand packaged food products made without artificial ingredients, as well as gluten, grain, dairy, soy, GMOs, excessive sugar, gums, and emulsifiers.
“Vestar is fully aligned with our vision of improving Americans’ eating habits, has the CPG expertise and connections to help us take the company to the next level, and will allow us to continue operating as an independent entity with the same strict clean-food principles that have driven our growth,” said Katlin Smith, Simple Mills founder and CEO. “It’s an ideal match that gives us new resources to expand our footprint and influence on the clean-food movement.”
“Simple Mills has helped shape the next generation natural food movement, fundamentally changing consumers’ concept of healthy food,” said Winston Song, managing director, Vestar. “We are excited to partner with Katlin, a true visionary in this space, to grow the company as it develops new products and enters new categories in the cleaner food category while staying true to Simple Mills’ brand promise.”
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services. Since its founding in 1988, Vestar funds have invested $8 billion of capital in more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
About Simple Mills
Founded in 2012, Simple Mills offers more than 30 baking mixes, crackers, cookies, bars and frostings that are free of gluten, grain, dairy, soy, GMOs, excessive sugar, gums, emulsifiers, and anything artificial. All products are made exclusively with real, whole-food ingredients like nutrient-dense almond flour, unrefined coconut sugar and sprouted seeds that work hard for the body in every bite while delivering taste that regularly earns five-star ratings from customers. For more information, visit www.simplemills.com.
Media Contacts for Vestar Capital Partners:
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Media Contacts for Simple Mills:
Jill Schmidt
847-904-2806
Rick Kash and Dimitri Panayotopoulos Join IRI Board of Directors
CHICAGO--(BUSINESS WIRE)--“We are very pleased to have Rick and Dimitri — two highly accomplished consumer goods professionals who are well respected in the industry — join the IRI board,” said Jeffrey Ansell, chairman of IRI and a Vestar senior advisor. “Both Rick and Dimitri bring deep insight, knowledge and specialized expertise uniquely suited to IRI’s business, and I look forward to their contributions in driving IRI’s next phase of growth.”
“I know IRI well and have long respected the company’s consistent, leading-edge innovations in the fast-moving predictive analytics sector,” said Mr. Kash. “I look forward to working closely alongside the rest of the Board to support IRI’s strategic initiatives and being part of this exciting company’s future in this dynamic field.”
“Successful brand-building and marketing demand the sophisticated, groundbreaking services and solutions offered by IRI,” said Mr. Panayotopoulos. “I am enthusiastic about working with the IRI team as we continue to enhance and refine analytics that anticipate competitive trends for our clients.”
“Our new directors have exceptional experience building brands and businesses via leveraging insights, analytics and the right strategic choices,” said Andrew Appel, president and chief executive officer of IRI. “We look forward to working with them to further IRI's mission of driving sustainable competitive advantage for our clients.”
Rick Kash
Rick Kash is the founder and former chairman and CEO of Cambridge Consulting Group, one of the world’s preeminent growth-strategy consulting firms, which was acquired by Nielsen Holdings Plc in 2009. Kash joined Nielsen at the time of the acquisition, ultimately serving as vice chairman of Nielsen. Since leaving Nielsen in 2016, Kash, who currently serves as a director of Simply Good Foods, has served on a variety of corporate and nonprofit boards. He is also currently affiliated with Vestar as a director of Woodstream, another Vestar portfolio company.
Kash founded two cancer research companies in partnership with Harvard University. His book, “How Companies Win,” was selected by Fortune magazine as the most important book for business leaders to read in 2011.
From 1995-2010, Kash was one of 36 elected members of the U.S. Senate Business Forum, a group of businesspeople selected by U.S. senators to advise senators and Cabinet members on the economy and U.S. business performance. A native of Chicago, Kash received a Doctor of Humane Letters degree from DePaul University in 2017.
Dimitri Panayotopoulos
Dimitri Panayotopoulos is a former vice chairman of The Procter & Gamble Company, where he had responsibility for the full portfolio of P&G’s brands and business units and more than $80 billion of global revenues. He brings deep experience in driving growth, innovation and executional excellence. Following his 37-year career at P&G, which spanned many of its international operations, he became a senior advisor at Boston Consulting Group.
Panayotopoulos’ distinguished career at P&G included positions in advertising and marketing before moving on to various country manager positions. He led successful initiatives in China that resulted in a multibillion-dollar P&G business and also managed P&G's 110-country market-development organization in Central and Eastern Europe, the Middle East and Africa and spearheaded the creation of a unified approach to building brands and businesses in those markets. After being named Group President of Global Fabric Care, Panayotopoulos helped build Downy, Lenor, and Gain into billion-dollar brands. Panayotopoulos resides in Switzerland and serves on the boards of British American Tobacco Company and JBS Foods International. He also served on the board of Logitech International until earlier this year.
About the IRI Partner Ecosystem
IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders across multiple industries and sectors to create innovative joint solutions, services and access to capabilities to help its clients more effectively collaborate and compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its open ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such leading companies as 84.51°, Adobe, The Boston Consulting Group, Clavis Insights, comScore, Data Plus Math, Dynata, Edison, Experian, GfK, Gigwalk, Google, Ipsos, Jumpshot, Mastercard Advisors, MaxPoint, Ogury, Omnicom, One Click Retail, Oracle, Pinterest, Simulmedia, SPINS, Univision, Viant, and others.
About IRI
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organizations, retailers, financial services and media companies grow their businesses. A confluence of major external events — a change in consumer buying habits, big data coming into its own, advanced analytics and personalized consumer activation — is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190912005164/en/
Edward Don Acquires Shervan Colonel Equipment Corp.
WOODRIDGE, IL / PE Hub / June 1, 2019 – Edward Don & Company, a nationwide distributor of foodservice equipment and supplies, announced today the acquisition of Shervan Colonel Equipment Corp., located in Las Vegas, Nevada. Shervan has designed and installed kitchens across the United States, including some of the highest volume restaurants, casinos and resort properties. Shervan Equipment will operate as a division of Edward Don & Company and remain under the leadership of Drew Shervan.
“We are excited to have Drew Shervan join our team,” said Steve Don, CEO of Edward Don & Company. “Drew’s excellent design and project management skills will be a great addition to our growing design-build capabilities.”
Drew Shervan stated, “I look forward to partnering with Edward Don & Company. DON’s nationwide scope and our shared vision of passionate customer service and outstanding foodservice design, will be a successful combination.”
This deal represents Edward Don & Company’s fourth acquisition since its investment from Vestar Capital Partners in March of 2017.
Edward Don Acquires Myers Restaurant Supply
Edward Don & Company (DON) is a distributor of foodservice equipment and supplies. The company stocks more than 12,000 SKU’s from 3,000 suppliers and its products include dinnerware, glassware, flatware, linens, buffet and table service, apparel, bar and kitchen supplies, furniture, fuel, cleaning products, paper towels, and tissues.
In addition to its distribution business, DON also as a Foodservice Equipment Division which provides kitchen design, equipment purchasing, and installation.
According to the 2019 Distribution Giants report published by Foodservice Equipment & Supplies magazine, DON had sales in 2018 of $1,027 million. DON has been owned and operated by the Don family since 1921.
DON, with approximately 1,250 employees, has seven distribution centers – in Chicago, Philadelphia, Atlanta, Miami, Dallas, Los Angeles, and Seattle – and is headquartered in Woodridge, IL (www.don.com).
Myers Restaurant Supply (Myers) is a distributor of foodservice equipment and supplies and is also a provider of restaurant and commercial kitchen design and build services. Customers include independent restaurants and multi-unit franchises, schools, hospitals, and country clubs. The company was founded in 1951 by Bob Myers and is today led by CEO Charlie Fusari and President Rob Myers (son of the founder). Myers is headquartered in Santa Rosa, CA (www.myersrestaurantsupply.com).
Myers will operate as a division of DON and remain under the leadership of Charlie Fusari and Rob Myers. “We look forward to bringing the Myers team on board,” said Steve Don, CEO of Edward Don & Company. “Their design-build and contract expertise complement our existing equipment and supplies business well, both in the California market and nationwide.”
The buy of Myers is DON’s third add-on acquisition under Vestar’s ownership. The two earlier buys were Smith & Greene, a Kent, WA-based foodservice equipment and supplies distributor, in December 2017, and Atlanta Fixture and Sales Company, an Atlanta-based foodservice equipment and supplies distributor, in October 2017.
Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments from $50 million to $150 million in middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services. Since the firm’s founding in 1988, Vestar has completed more than 80 investments in companies with a total value of more than $50 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).
Roland Foods Acquires Albert Uster Imports
NEW YORK, Jan. 10, 2019 /PRNewswire/ -- Roland Foods, LLC ("Roland Foods"), a portfolio company of Vestar Capital Partners, has closed the acquisition of Albert Uster Imports, Inc. ("AUI"). Terms of the transaction were not disclosed.
Based in Gaithersburg, Maryland, AUI has been a leading importer of specialty pastry, bakery, and confectionary products to professional chefs and bakers for 50 years. AUI sources products from more than 150 global suppliers, including exclusive distribution arrangements with best-in-class brands such as Felchlin, HUG, Ponthier, Laderach, and PCB Creation, among others.
Roland Foods, founded in 1934, is a leading importer of specialty food products, providing more than 1,500 globally sourced SKUs to North American and international foodservice, retail, and industrial customers. Roland Foods has been a portfolio company of Vestar since 2013.
"The acquisition of AUI establishes Roland Foods as a leading platform within the specialty foods landscape," said James Wagner, CEO of Roland Foods. "This acquisition doubles Roland Foods' portfolio of unique, hard-to-source specialty products, increases our presence in the growing pastry and confections product lines, and offers us entry into the frozen and refrigerated categories."
"AUI and Roland Foods have much in common as global leaders in the imported specialty foods niche," said Philipp Braun, CEO of AUI. "However, there is little product overlap and each company brings complementary products and services to the combination. The resources and expertise that AUI can now tap through Roland Foods will accelerate our ambitious plans for both product and customer expansion."
Kirkland & Ellis served as legal counsel and SunTrust Robinson Humphrey as financial advisor to Roland Foods and Vestar. Legal counsel for AUI was provided by Arnold & Porter.
About Roland Foods
Roland Foods, based in New York City, specializes in importing high-quality specialty food products from more than 50 countries. Founded in Paris in 1934 and established in the U.S. in 1939, the Company provides customers with exceptional specialty foods, primarily offered under the Roland brand. The company has a national presence in the foodservice, retail, and industrial channels as well as international sales in the Caribbean, Central and South America, Asia, Africa, and the Middle East. Roland Foods' dedication to providing quality and consistency has made it a leader among food importers and suppliers. The Roland brand is synonymous with quality for the consumer and chef alike. For more information, please visit www.rolandfoods.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
Media Contacts:
Blicksilver Public Relations, Inc.
Jennifer Hurson
845-507-0571
[email protected]
Carol Makovich
203-622-4781
[email protected]
Healthgrades Acquires Influence Health to Expand Footprint
DENVER, Jan. 8, 2019/Denver Business Journal/ -- Healthgrades, the online portal that lets consumers read reviews on hospitals, doctors and other health care providers, has acquired a Birmingham company that’s going to allow it to expand its customer relationship management business and add new offerings to its suite of products.
Rob Draughon, CEO of the Denver-based company, announced at the 37th annual J.P. Morgan Healthcare Conference on Tuesday, that Healthgrades acquired Birmingham, Alabama-based Influence Health, a company that offers web development, social media and search optimization products for health care customers.
Terms of the deal were undisclosed, but Draughon told Denver Business Journal it would give the combined company about 1,500 customers. Both companies had about 1,000 customers ahead of the acquisition.
The company doesn’t share revenue numbers, but Draughon expects the deal to increase business by 20 percent in 2019.
That’s going to be done by boosting its CRM business. The software product accounts for about 25 percent of the company’s revenue. Influence also offered a CRM solution to its customers.
Draughon said part of the appeal to purchase Influence was its ability to drive social media and search campaigns, along with its website-building services.
“It’s going to expand our footprint and add some new offerings,” he said. “It’s much easier to up-sell to the existing base then try to venture out into a new customer base.”
One of those new products for Healthgrades to up-sell will be Influence’s directory listing management software. The technology checks health system information, like phone numbers, personnel and addresses, across the internet to make sure everything is up to date.
Healthgrades makes a majority of its revenue — about 75 percent — from its physician directory, which gives consumers relevant information about hospitals and doctors in their area. Health systems sponsor about 75 percent of that revenue; pharmaceutical customers make up about 25 percent, Draughon said.
The acquisition adds about 80 employees, bringing Healthgrade’s total workforce to more than 800. The combined company's headquarters will be in Denver. A company spokeswoman said there were some redundancies as part of the deal, but declined to disclose specific numbers. Influence Health employed about 200 people and had plans to grow.
Last year, Influence did a major expansion in Atlanta, where it had plans to double its workforce and relocate to Armour Yards, a 300,000-square-foot loft-office project. The company had plans to add as many as 35 jobs in Atlanta through 2019.
In 2015, Influence entered the Atlanta market after it purchased BrightWhistle, a company that developed software to aid health insurers, physicians and hospitals land new patients, for $20 million.
Healthgrades will keep existing offices in Birmingham and Atlanta, in addition to its Raleigh office, Draughton said. Both companies also have smaller offices in Madison, Wisconsin, which will be consolidated into one building.
Draughon said he isn’t done buying more companies.
“This is the second deal we’ve done in the last three years,” he said. “We’ve been looking at companies, but prices were not attractive. Now, there are some in our space that we hope to [acquire].”