SpecialtyCare (SCSG), based in Nashville, provides outsourced clinical services to hospitals and health systems nationwide. SCSG provides outsourced perfusion, autotransfusion, anesthesia technician, surgical blood management, intra-operative monitoring, and endoscopy services.
Situation
In late 2008 Petra issued a term sheet for sub debt with warrants for SpecialtyCare to complete an acquisition. The acquisition fell through though Petra continued discussions with management about a broader acquisition strategy requiring a restructuring of the balance sheet to position the company for growth.
Petra’s Role
Petra closed its initial $7 million sub debt investment in May 2009 and provided an additional $7 million of sub debt to fund an acquisition in March 2010. Petra introduced two acquisitions to the Company and during our investment period the company completed over $75 million of acquisitions.
Results
The Board decided to seek additional equity capital to continue the company’s acquisition strategy and American Securities acquired SpecialtyCare in May 2011. During our 2 year hold, SpecialtyCare’s enterprise value grew from $70 million to $233 million.