M&A Deal Summary

Monitor Clipper Partners and HarbourVest Partners Acquire MSC Group

On March 31, 2005, private equity firms Monitor Clipper Partners and HarbourVest Partners acquired business services company MSC Group from H.I.G. Private Equity

Acquisition Highlights
  • This is Monitor Clipper Partners’ 4th and HarbourVest Partners’ 3rd transaction in the Business Services sector.
  • This is Monitor Clipper Partners’ 14th and HarbourVest Partners’ 13th transaction in the United States.
  • This is Monitor Clipper Partners’ 1st and HarbourVest Partners’ 2nd transaction in Florida.
Investment Fate
  • MSC Group was sold to a strategic buyer in 2012.

M&A Deal Summary

Date 2005-03-31
Target MSC Group
Sector Business Services
Buyer(s) Monitor Clipper Partners
HarbourVest Partners
Sellers(s) H.I.G. Private Equity
Deal Type Secondary Buyout

Target

MSC Group

Jacksonville, Florida, United States
MSC Group, Inc (Formely Medical Services Company)based in Jacksonville, Florida, is one of the largest providers in the U.S. of medical products and services to workers' compensation patients on behalf of insurance carriers, third party administrators, and government agencies. MSC's revenues are in excess of $150 million. MSC has a diversified customer base that includes eighteen of the twenty largest workers' compensation insurance carriers. Over the past 15 years, MSC has developed an integrated nationwide healthcare distribution system which allows its customers to better control the costs of medical product claims.

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Buyer(S) 2

Buyer

Monitor Clipper Partners


Category Private Equity Firm
Founded 1998
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Monitor Clipper Partners (MCP) is a private equity group formed by consulting firm The Monitor Group and private equity firm The Clipper Group. MCP targets private equity investments in middle-market companies in North America and Western Europe and looks to commit $10 to $70 million of equity per transaction. MCP does not focus on any particular sector but current portfolio companies suggest an interest in business services, natural/organic foods, specialty retail, health care services, gaming, logistics, mortgage technology, marketing services, financial services and metals. The Firm will consider both control and minority positions. Monitor Clipper Partners was formed in 1998 and is based in Cambridge, Massachusetts with additional offices in Zurich, Switzerland, Toronto, Canada, Luxembourg and London, United Kingdom.


DEAL STATS #
Overall 16 of 41
Sector: Business Services M&A 4 of 5
Type: Secondary Buyout M&A Deals 1 of 1
State: Florida M&A 1 of 1
Country: United States M&A 14 of 33
Year: 2005 M&A 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-08-17 Filogix

Toronto, Ontario, Canada

Filogix, a Toronto-based provider of business solutions to Canada's real estate and mortgage-related industries. Filogix' core products connect mortgage lenders with independent mortgage brokers, lenders' in-house salesforces, and other data providers that participate in the mortgage process. Brokers and salespeople enter mortgage application data into a Filogix system, which then transmits the application to lenders for underwriting. The Company also provides workflow management products designed to increase the efficiency of both originators and lenders.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-05 Palladium Group

Washington, District of Columbia, United States

Palladium Group is a professional services firm that provides services and expertise in strategy, finance, IT and human capital management. Palladium Group is based in Washington DC.

Buy -
Buyer

HarbourVest Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 147.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HarbourVest Partners, LLC is an investment firm that makes investments in new private equity partnerships, acquires secondary interests, and makes direct investments in operating companies. HarbourVest's largest investment area is investments in private equity funds, comprising of approximately 2/3 of HarbourVest's assets. HarbourVest's direct investment group looks for investments in growth oriented businesses at a variety of stages. The Group generally targets co-investments of $5 to $100 million, growth capital financings of $5 to $40 million, or mezzanine commitments of $5 to $20 million. Sectors of interest include software, hardware, data communications, telecommunications, and financial services. HarbourVest was formed in 1997 to assume the business of Hancock Venture Partners which was formed in 1982. HarbourVest Partners is based in Boston, Massachusetts, with additional offices in London, Tokyo, and Hong Kong.


DEAL STATS #
Overall 20 of 214
Sector: Business Services M&A 3 of 8
Type: Secondary Buyout M&A Deals 3 of 55
State: Florida M&A 2 of 8
Country: United States M&A 13 of 130
Year: 2005 M&A 2 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-11 Nycomed Pharma AG

Zurich, Switzerland

Nycomed Pharma AG is a manufacturer, marketer, and promoting a range of Rx and OTC pharmaceutical products in Europe. Nycomed offers hospital products and general practitioner medicines, as well as provides late-stage clinical development, and registration and marketing. Nycomed Pharma AG was established in 1986 and is based in Zurich, Switzerland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-05 Datatel

Fairfax, Virginia, United States

Datatel has focused exclusively on helping colleges and universities manage their business processes. Datatel today provides fully integrated enterprise information management software solutions to more than 600 colleges, universities and other higher education institutions serving almost 4 million students

Buy -

Seller(S) 1

SELLER

H.I.G. Private Equity

Miami, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1993
PE ASSETS 65.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HIG Private Equity is the private equity arm of HIG Capital. The Firm focuses on management buyouts, growth equity investments, and recapitalizations of mid-sized to large companies valued between $50 million and $1 billion. HIG will also consider industry consolidations, going-privates, and corporate divestitures. Sectors of interest include aerospace, building materials, business services, consumer products, distribution, healthcare, infrastructure, contracting, manufacturing, media, oil & gas services, IT, and transportation. HIG was formed in 1993 is based in Miami, Florida.


DEAL STATS #
Overall 4 of 181
Sector: Business Services M&A 1 of 22
Type: Secondary Buyout M&A Deals 3 of 75
State: Florida M&A 1 of 20
Country: United States M&A 4 of 124
Year: 2005 M&A 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-01 Personal Optics

Fullerton, California, United States

Personal Optics is a marketer and distributor of eyewear in the US. Based in Fullerton, California, the Company is a major distributor of non-prescription reading glasses and popular-priced sunglasses to grocery and drug store chains and mass merchants.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-01 Specialized Vehicles

Dalton, Ohio, United States

Specialized Vehicles Corporation is the leading manufacturer of specialized truck bodies and trailers servicing multi-stop beverage and food service distributors. Hackney specializes in drop-frame, side-access, aluminum bodies and trailers which enjoy a premium reputation.

Sell $53M