Houlihan Lokey Advises STAT Health
Houlihan Lokey is pleased to announce that it recently advised STAT Health urgent care (STAT Health), a portfolio company of Spanos Barber Jesse & Co., on its acquisition by CityMD, a portfolio company of Warburg Pincus LLC. The transaction closed on May 8, 2018.
STAT Health was co-founded in 2005 by Dr. Paolo Coppola, a board-certified emergency medicine physician, who saw a need for a walk-in medical center that could respond in a timely and cost-effective manner to both urgent and routine medical situations in a convenient and comfortable setting. More than a decade, 12 locations, and 1 million patient visits later, STAT Health continues to offer a personalized, expert care alternative to the conventional hospital emergency room or medical clinic.
Spanos Barber Jesse & Co. (SBJ) is a private equity firm with over $250 million of committed capital that invests in lower middle market consumer, healthcare services, and business services companies. Founded by a team of professionals with over 75 years of experience growing companies as investors and executives, SBJ draws on the operating experience and domain expertise of its team to support the strategic goals of its partner companies. SBJ's founders have invested more than $600 million into more than 35 companies, including Armor Express, Troy Lee Designs, Swensons Drive-In Restaurants, Jefferson Dental, Peet's Coffee & Tea, and The Wine Group.
Founded in 2010 by a passionate group of emergency medicine physicians, CityMD's mission is to serve its communities by providing quality medical care through convenient access and an exceptional experience. The company's unwavering commitment to treating everyone with respect and genuine kindness while offering exceptional services and a cost-effective alternative to the ER has enabled CityMD to grow from one Manhattan practice to more than 85 locations in the greater New York metro area and Seattle, Washington. To date, CityMD has treated over 5 million patients.
Warburg Pincus is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm's active portfolio of more than 150 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 17 private equity funds that have invested more than $60 billion in over 800 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.
This transaction further strengthens Houlihan Lokey’s leadership position in the physician practice management and multi-site healthcare sectors, where Houlihan Lokey has advised on approximately $8 billion in transaction enterprise value over the past three years. The transaction also further strengthens Houlihan Lokey’s leadership position in the U.S. urgent care sector, representing the firm's fourth transaction in the sector over the past four years.
Houlihan Lokey served as the exclusive financial advisor to STAT Health and assisted in structuring and negotiating the transaction on its behalf.
Houlihan Lokey's Healthcare Group is a recognized leader in M&A advisory and capital-raising services, providing advice to healthcare services, managed care, senior housing, biopharmaceutical, and life sciences companies. With more than 30 investment bankers in Chicago, Dallas, and New York, Houlihan Lokey's Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2017, the group closed 21 transactions and was ranked the No. 1 M&A advisor for U.S. healthcare transactions under $1 billion by Thomson Reuters. Houlihan Lokey's Healthcare Group has closed more than 300 M&A healthcare transactions since inception.
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