M&A Deal Summary

Leonard Green & Partners and Ares Private Equity Group Acquire CHG Healthcare Services

On November 19, 2012, private equity firms Leonard Green & Partners and Ares Private Equity Group acquired staffing company CHG Healthcare Services from Prospect Hill Growth Partners

Acquisition Highlights
  • This is Leonard Green & Partners’ 1st and Ares Private Equity Group’s 2nd transaction in the Staffing sector.
  • This is Leonard Green & Partners’ 42nd and Ares Private Equity Group’s 38th transaction in the United States.
  • This is Leonard Green & Partners’ 1st and Ares Private Equity Group’s 1st transaction in Utah.

M&A Deal Summary

Date 2012-11-19
Target CHG Healthcare Services
Sector Staffing
Buyer(s) Leonard Green & Partners
Ares Private Equity Group
Sellers(s) Prospect Hill Growth Partners
Deal Type Secondary Buyout
Advisor(s) Goldman Sachs (Financial)

Target

CHG Healthcare Services

Salt Lake City, Utah, United States
CHG Healthcare Services is a healthcare staffing firm that provides physicians, allied health professionals, and nurses to hospitals and healthcare organizations in all 50 states on both a temporary and permanent basis. CHG Healthcare Services is based in Salt Lake City, Utah.

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Buyer(S) 2

Buyer

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 75.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


DEAL STATS #
Overall 43 of 102
Sector (Staffing) 1 of 2
Type (Secondary Buyout) 6 of 47
State (Utah) 1 of 1
Country (United States) 42 of 94
Year (2012) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-28 David s Bridal

Conshohocken, Pennsylvania, United States

David’s Bridal is a retailer of bridal gowns and bridal-party related merchandise through its David’s Bridal stores and Priscilla of Boston stores. David’s Bridal stores provide an assortment of designer wedding gowns, special occasion dresses and accessories at affordable prices. Known for value, fashionable designs and the ease of one-stop shopping, David’s Bridal designs, produces and sells a wide selection of styles and sizes through a network of over 300 US and 5 Canadian stores. David's Bridal is based in Conshohocken, Pennsylvania.

Sell $1.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-06 TopShop/TopMan

Tel Aviv, Israel

Topshop is a fast-fashion branded apparel retailer based in England with a growing presence in the United States and other international markets.

Buy -
Buyer

Ares Private Equity Group

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2003
PE ASSETS 20.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ares Private Equity Group is the private equity arm of Ares Management, a global alternative asset manager. The Ares Private Equity Group specializes in opportunistic majority/shared control investments in under-capitalized middle-market companies. Ares looks for companies with strong franchises and attractive growth opportunities. The Group prefers to be the lead investor and will invest across the capital structure, including common equity, preferred equity, convertible equity/debt and senior debt. Areas of interest include business services, defense, healthcare, manufacturing, industrial, energy and consumer products and services. Ares Private Equity Group was formed in 2003 and is based in Los Angeles, California.


DEAL STATS #
Overall 42 of 98
Sector (Staffing) 2 of 2
Type (Secondary Buyout) 13 of 39
State (Utah) 1 of 1
Country (United States) 38 of 82
Year (2012) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-10-11 Smart & Final

Commerce, California, United States

Smart & Final is an operator of the smaller stores, warehouse-style, no membership fee, multi-format retailer serving both households and smaller businesses with a strong value proposition. Smart & Final operates 257 stores under its Smart & Final banner, which offer quality products in a variety of sizes, saving customers time and money without a membership fee. Its larger format stores, Smart & Final Extra! stores, combine the warehouse store with traditional grocery offerings like farm-fresh produce and natural and organic options, to provide a one-stop-shop for all. Smart & Final was founded in 1871 and is based in Commerce, California.

Buy $975M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-23 Claranet

London, United Kingdom

Claranet provides a wide range of integrated hosting, networks, and communications managed services, as well as our support and expertise 24×7. Claranet was formed in 1996 and is based in London, England.

Buy -

Seller(S) 1

SELLER

Prospect Hill Growth Partners

Waltham, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 2.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Prospect Hill Growth Partners is a private equity firm specializing in leveraged buyouts and recapitalizations of middle-market growth companies across the US. Prospect Hill looks for profitable businesses ($5 to $25 million of EBITDA) with annual revenues from $50 to $300 million with strong brands and leading market positions. Target sectors include consumer products, healthcare, specialty retail, and asset management. Prospect Hill Growth Partners was formerly known as J.W. Childs and changed its name in 2019. The Firm was originally formed in 1995 and is headquartered in Waltham, Massachusetts.


DEAL STATS #
Overall 13 of 22
Sector (Staffing) 2 of 2
Type (Secondary Buyout) 7 of 11
State (Utah) 1 of 1
Country (United States) 13 of 22
Year (2012) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-22 Tile Shop

Plymouth, Minnesota, United States

Tile Shop is a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States. Tile Shop was founded in 1985 and is based in Plymouth, Minnesota.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-07-18 Joseph Abboud

New York, New York, United States

Joseph Abboud is a men's apparel company that designs, merchandises, sources, manufactures, markets and distributes a wide range of products, including suits, sport coats, trousers, sportswear, dress shirts, ties, and through licensing agreements, men's accessories and home furnishings. Joseph Abboud is based in New York City.

Sell $98M