Add-on Acquisition • Healthcare Services

Alliance HealthCare Services Acquires e+CancerCare

On January 11, 2018, Alliance HealthCare Services acquired healthcare services company e+CancerCare from Kohlberg & Company and Frontenac

Acquisition Context
  • This is Alliance HealthCare Services’ 5th transaction in the Healthcare Services sector.
  • This is Alliance HealthCare Services’ 5th transaction in the United States.
  • This is Alliance HealthCare Services’ 1st transaction in Tennessee.
Investment Fate
  • e+CancerCare was divested to a consortium of strategic buyers in 2019.

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M&A Deal Summary

Date January 11, 2018
Target e+CancerCare
Sector Healthcare Services
Buyer(s) Alliance HealthCare Services
Sellers(s) Kohlberg & Company
Frontenac
Deal Type Add-on Acquisition
Advisor(s) Cain Brothers & Co. (Financial)
Paul, Weiss, Rifkind, Wharton & Garrison (Legal)

Target Company

e+CancerCare

Nashville, Tennessee, United States
e+CancerCare is an operator of outpatient cancer care centers in the nation driven by its mission of partnering with communities to fight cancer. e+CancerCare core focus includes building a best-in-class network of cancer care facilities through partner acquisition, service-line conversion, and de novo development. e+CancerCare offer physicians and hospitals the financial and operational support they need so they can focus on delivering the highest quality care close to home. e+CancerCare creates environments for patients that meet their physical, emotional and mental health needs.
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Buyer Overview 1

Buyer

Alliance HealthCare Services

Newport Beach, California, United States

Category Company
Founded 1983
Sector Healthcare Services
Employees1,582
Revenue 473M USD (2015)
DESCRIPTION

Alliance HealthCare Services is a provider of shared-service and fixed-site diagnostic imaging services. Alliance provides comprehensive turnkey solutions to hospitals and other health providers for MRI, PET, CT and Radiation Oncology Systems. Alliance HealthCare Services was founded in 1983 and is based in Newport Beach, California.


Deal Context for Buyer #
Overall 5 of 9
Sector: Healthcare Services 5 of 8
Type: Add-on Acquisition 5 of 5
State: Tennessee 1 of 1
Country: United States 5 of 9
Year: 2018 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-06-28 Radiology 24/7

San Diego, California, United States

Radiology 24/7 is a provider of radiology and radiology reporting services for radiology practices, diagnostic imaging centers, and hospitals.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-08 OnPoint Diagnostic

Newport Beach, California, United States

OnPoint Diagnostic is a web application that performs automatic analysis of phantom quality control images.

Sell -

Seller Profiles 2

SELLER

Kohlberg & Company

Mount Kisco, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 11.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kohlberg & Company is a private equity firm which acquires middle-market companies with consistent cash flow, and underperforming companies with operational deficiencies. Kohlberg looks to commit $100 to $500 million of equity capital in opportunities valued from $200 million to $2 billion. Kohlberg generally looks for opportunities in the manufacturing and service sectors, however the Firm will also selectively consider businesses in food and healthcare. Kohlberg tends not to consider technology or communications companies. Kohlberg & Company was formed in 1987 and has offices in Mt. Kisco, New York.


Deal Context for Seller #
Overall 38 of 48
Sector: Healthcare Services 4 of 5
Type: Add-on Acquisition 15 of 18
State: Tennessee 4 of 5
Country: United States 37 of 47
Year: 2018 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-01 SVP Worldwide

Nashville, Tennessee, United States

SVP Worldwide is a consumer sewing machine company with market shares across all industry price points. SVP unites three of the industry's most widely recognized brands, Singer, Husqvarna Viking, and Pfaff, that successfully target distinct market segments. SVP Worldwide was formed in 1851 and is based in Nashville, Tennessee.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-31 Pexco

Alpharetta, Georgia, United States

Pexco is a North American designer and fabricator of engineered plastic components. It provides standard and specialty parts and components to manufacturers and end-users for a broad range of custom applications, including the specialty industrial, fluid-handling, lighting, traffic safety, fence, and electrical insulation industries. Pexco offers a full range of custom design, engineering, and fabrication services, including ISO 9001:2015 registration, across its manufacturing operations. Pexco is based in Alpharetta, Georgia.

Sell -
SELLER

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


Deal Context for Seller #
Overall 49 of 60
Sector: Healthcare Services 5 of 6
Type: Add-on Acquisition 15 of 22
State: Tennessee 4 of 4
Country: United States 47 of 58
Year: 2018 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-03 A.H. Harris Construction Supplies

Hartford, Connecticut, United States

A.H. Harris Construction supplies a high-quality construction products and equipment for contractors, construction companies and government entities in the concrete construction, repair and restoration, road and bridge, rebar and rebar fabrication, waterproofing and glazing markets. It represents 500+ manufacturers and over 13,000 products. A.H. Harris has over 600 experienced team members, a multitude of delivery options and over 50 convenient locations in 12 states.

Sell $380M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-02 TPC

Buffalo Grove, Illinois, United States

TPC engages in maintenance, repair, and operator training, with complete solutions for a 21st-century workforce to acquire, apply, and adapt essential technical and safety skills. TPC Training offers a complete portfolio of innovative industrial skills training methods, including online, live Instructor, VR, and innovative on-the-job simulations to fit every need and budget. TPC was founded in 1969 and is based in Buffalo Grove, Illinois.

Buy -