M&A Deal Summary

The Blackstone Group Acquires Team Health

On October 12, 2005, private equity firm The Blackstone Group acquired staffing company Team Health from Cornerstone Equity Investors, Beecken Petty O Keefe & Company and Madison Dearborn Partners for 1.0B USD

Acquisition Highlights
  • This is The Blackstone Group’s 1st transaction in the Staffing sector.
  • This is The Blackstone Group’s 83rd largest (disclosed) transaction.
  • This is The Blackstone Group’s 63rd transaction in the United States.
  • This is The Blackstone Group’s 4th transaction in Tennessee.
Investment Fate
  • Team Health went public in 2009.
  • Team Health was sold to a consortium of financial buyers in 2016 for 6.1B USD.

M&A Deal Summary

Date 2005-10-12
Target Team Health
Sector Staffing
Buyer(s) The Blackstone Group
Sellers(s) Cornerstone Equity Investors
Beecken Petty O Keefe & Company
Madison Dearborn Partners
Deal Type Secondary Buyout
Deal Value 1.0B USD
Advisor(s) J.P. Morgan Securities LLC
Lehman Brothers, Inc.
Bank of America Merrill Lynch (BofA Securities) (Financial)
Kirkland & Ellis LLP (Legal)

Target

Team Health

Knoxville, Tennessee, United States
website
Team Health's corporate headquarters in Knoxville, Tennessee.
Team Health's corporate headquarters in Knoxville, Tennessee.
Team Health is a provider of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. Team Health was formed in 1979 and is based in Knoxville, Tennessee.

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Buyer(S) 1

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York City.


DEAL STATS #
Overall 87 of 305
Sector (Staffing) 1 of 4
Type (Secondary Buyout) 9 of 68
State (Tennessee) 4 of 8
Country (United States) 63 of 193
Year (2005) 8 of 11
Size (of disclosed) 83 of 162
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-05 Sithe Global Power

New York, New York, United States

Sithe Global Power is an international development company engaged in the development, construction, acquisition and operation of electric generation facilities in attractive markets around the world.

Buy $3.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-01 TDC Group

Copenhagen, Denmark

TDC Group is a provider of communications and entertainment solutions. TDC Group has become two companies, each with its own core areas, which work towards a digital future, TDC NET delivers the best mobile network and the fastest fixed-line connections – and represents Denmark’s digital future with a roll-out of fiber and 5G. Nuuday is the leading service provider of digital services within TV, broadband, network, and telephony for private customers and businesses and consists of nine-strong brands.

Buy $15.8B

Seller(S) 3

SELLER

Cornerstone Equity Investors

Stamford, Connecticut, United States

website


Category Private Equity Firm
Founded 1996
PE ASSETS 1.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Cornerstone Equity Investors is private equity firm focused on investing in and acquiring middle-market leveraged buyouts of corporate divisions, closely held private companies and small capitalization public companies. The Firm targets businesses with at least $5 million of EBITDA and valued between $50 and $350 million. Cornerstone can invest up to $100 million per transaction. Broad industries of interest include business services, healthcare, and specialty manufacturing. Cornerstone originated as Prudential Equity Investors in 1984 and became independent in 1996. Cornerstone Equity is based in New York City.


DEAL STATS #
Overall 8 of 15
Sector (Staffing) 1 of 1
Type (Secondary Buyout) 2 of 4
State (Tennessee) 2 of 2
Country (United States) 8 of 15
Year (2005) 1 of 2
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-11-17 Inflow

Thornton, Colorado, United States

Inflow, Inc. is a data center operator providing facilities based IT services to companies with critical business and network applications over wired and virtual networks.

Sell $189M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-06 Arraycomm

Buffalo Grove, Illinois, United States

ArrayComm is a full-line provider of physical layer solutions for wireless infrastructure and client device applications. We are a world leader in multi-antenna signal (MAS) processing, delivering the A‑MAS™ suite of 4G commercial MAS software for base station and mobile / CPE applications, which combines MIMO; beamforming; interference cancellation; and enhancements for uplink, downlink, and control channels to improve end-user experiences and radio network economics through gains in coverage, client data rates, and system capacity. Our comprehensive and flexible PHY solutions include optimized DSP software and hardware accelerators for WiMAX and LTE that save development costs and time to market.

Sell -
SELLER

Beecken Petty O Keefe & Company

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1996
PE ASSETS 1.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Beecken Petty O'Keefe & Company (BPOC) is a specialist private equity firm that targets investments in middle-market healthcare companies. Specific areas of interest within healthcare include, specialty distribution; provider and payor outsourcing; pharmacy, infusion, and home healthcare; outpatient an alternate site services; and medical products manufacturing with a focus on capital equipment. The Firm focuses on recapitalizations, buyouts, and growth capital investments. BPOC was formed in 1996 and is based in Chicago, Illinois.


DEAL STATS #
Overall 7 of 36
Sector (Staffing) 1 of 3
Type (Secondary Buyout) 1 of 5
State (Tennessee) 1 of 2
Country (United States) 7 of 35
Year (2005) 2 of 2
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-07-01 CryoCor

San Diego, California, United States

CryoCor, Inc. is a medical technology company specializing in the use of intracardiac cryotherapy technology.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-06 Take Care Health Systems

Chadds Ford, Pennsylvania, United States

Take Care operates nurse practitioner-staffed primary care clinics located in high-traffic retail pharmacy stores. The Company's clinics provide cost-effective, convenient access to quality healthcare for families and special populations, including the under-insured, and Medicare and Medicaid recipients

Buy -
SELLER

Madison Dearborn Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1992
PE ASSETS 28.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Madison Dearborn Partners (MDP) is a large private equity firm that targets buyouts of private or publicly held companies, divestitures of larger companies, recapitalizations of family-owned or closely-held companies, acquisition-oriented financings, and financings to fund internal growth. MDP's target investment size is $100 to $600 million in buyout oriented transactions and $100 to $400 million in growth capital commitments. Areas of interest include basic industries (natural resources, chemicals, energy and power, automotive, building products, food, metals and mining, refining, paper, packaging and forest products, and general manufacturing), as well as communications, consumer products/services, financial services, and healthcare. Madison Dearborn Partners was formed in 1992 and is based in Chicago, Illinois.


DEAL STATS #
Overall 17 of 68
Sector (Staffing) 1 of 2
Type (Secondary Buyout) 2 of 13
State (Tennessee) 2 of 3
Country (United States) 16 of 60
Year (2005) 4 of 6
Size (of disclosed) 11 of 24
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-12 WM. Bolthouse Farms

Bakersfield, California, United States

Wm. Bolthouse Farms, Inc. is a vertically integrated carrot and premium beverage manufacturer and distributor serving a broad customer base, including traditional retail grocery stores, mass merchants, club stores, and the natural foods channel. WM. Bolthouse Farms, Inc. was founded in 1915 and is based in Bakersfield, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-01 Cbeyond

Atlanta, Georgia, United States

Cbeyond is a provider of broadband communications applications to small and medium size businesses. Cbeyond is establishing a new category of next-generation broadband service providers by providing a fully integrated suite of local and long distance voice communications, high-speed Internet access, and enhanced data applications services over a common Internet protocol (IP) architecture.

Sell -