M&A Deal Summary

BPOC and Five Arrows Acquire Zenith American Solutions

On December 13, 2017, private equity firms BPOC and Five Arrows acquired healthcare services company Zenith American Solutions from Water Street Healthcare Partners

Acquisition Highlights
  • This is BPOC’s 9th and Five Arrows’ 2nd transaction in the Healthcare Services sector.
  • This is BPOC’s 28th and Five Arrows’ 2nd transaction in the United States.
  • This is BPOC’s 2nd and Five Arrows’ 1st transaction in Florida.

M&A Deal Summary

Date 2017-12-13
Target Zenith American Solutions
Sector Healthcare Services
Buyer(s) BPOC
Five Arrows
Sellers(s) Water Street Healthcare Partners
Deal Type Secondary Buyout
Advisor(s) Waller Helms Advisors
Harris Williams & Co. (Financial)

Target

Zenith American Solutions

Tampa, Florida, United States
Zenith American Solutions is an administrator to Taft-Hartley multi-employer funds in the U.S. The company's solutions enable the delivery of complex healthcare and retirement benefits to union members through its dynamic technology-enabled platform. Zenith American Solutions was founded in 1944 and is based in Tampa, Florida.

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Buyer(S) 2

Buyer

BPOC

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 1.8B 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 29 of 41
Sector (Healthcare Services) 9 of 15
Type (Secondary Buyout) 8 of 13
State (Florida) 2 of 3
Country (United States) 28 of 40
Year (2017) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-15 Cranial Technologies

Tempe, Arizona, United States

Cranial Technologies engages in treatment of plagiocephaly, or flat head syndrome, which typically manifests itself in infants 3 to 18 months of age. The Company’s skilled clinicians provide superior patient outcomes through a network of 37 treatment centers using a proprietary FDA-cleared cranial orthotic helmet, which is custom manufactured in-house. Cranial Technologies was formed in 1988 and is based in Tempe, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-03 Paragon Medical

Pierceton, Indiana, United States

Paragon Medical, Inc. is a provider of medical devices used in orthopedic surgical procedures. Paragon manufactures trays and cases for use in surgical delivery systems, surgical instruments, and precision manufactured implants for orthopedic medical device original equipment manufacturers. Paragon Medical was founded in 1991 and is based in Pierceton, Indiana.

Sell $375M
Buyer

Five Arrows

Paris, France

Investor Investor Investor Investor Investor


Category Private Equity Firm
PE ASSETS 24.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

Five Arrows Principal Investments is a mid-cap investor in Western European companies. Five Arrows can invest across the capital structure (equity, equity-linked, mezzanine, convertible debt) and generally focused on primary or secondary buyouts, growth financings, and balance sheet restructurings. The Group does not have any sector preferences, but typically looks for businesses with high barriers to entry and predictable earnings. Five Arrows can commit €30 to €400 million per investment. Five Arrows is a unit of Rothschild Bank. The Group has offices in Paris, Luxembourg, and London.


DEAL STATS #
Overall 26 of 55
Sector (Healthcare Services) 2 of 6
Type (Secondary Buyout) 14 of 33
State (Florida) 1 of 1
Country (United States) 2 of 9
Year (2017) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-15 A2Mac1

Boulogne Billancourt, France

A2Mac1 is an automotive competitive benchmarking data and intelligence that provides a proven track record of delivering high quality and mission-critical data to unlock key insights to more than 500.000 professionals across the entire automotive value chain from OEM, OES, Tier 1, and Tier 2 supplier to Universities, Consulting firms and Raw Materials provider. A2Mac1 was founded in 1997 and is based in Boulogne Billancourt, France.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-04 Stepping Stones Group

Lafayette, Colorado, United States

Stepping Stones Group is a provider of therapeutic behavioral health services to a variety of public school districts and private learning centers. Stepping Stones Group is based in Lafayette, Colorado.

Buy -

Seller(S) 1

SELLER

Water Street Healthcare Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 6.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Water Street is a specialist private equity firm that targets investments in healthcare companies. Specific areas of interest within healthcare include diagnostic devices, medical products, pharmaceutical services, specialty distribution, specialty pharmaceuticals, and specialty services. Water Street targets non-core units of larger corporations and private middle-market companies. Transactions are typically valued between $50 and $500 million. Water Street does not invest in biotechnology, traditional healthcare facilities (hospitals, nursing homes) or early-stage companies without positive cash flow. Water Street was formed in 2005 and is based in Chicago, Illinois.


DEAL STATS #
Overall 22 of 31
Sector (Healthcare Services) 6 of 8
Type (Secondary Buyout) 5 of 7
State (Florida) 2 of 2
Country (United States) 22 of 30
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-03 EBMS

Billings, Montana, United States

EBMS is a third-party administrator for self-funded health care plans, EBMS architects blueprints for employers' health care management strategies. EBMS' benefits experts reduce costs, improve care, and make it easy for their customers by simplifying a traditionally complex industry. EBMS was founded in 1980 and is based in Billings, Montana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-12 Sarnova

Dublin, Ohio, United States

Sarnova is a U.S. specialty distributor of healthcare products for the emergency preparedness and acute care markets. The company is comprised of four major business units: Bound Tree Medical, Cardio Partners, Emergency Medical Products and Tri-anim Health Services. Sarnova was founded in 2008 and is based in Dublin, Ohio.

Sell $903M