TowerBrook Capital Partners L.P., the New York and London-based private equity firm, announced today that it has signed a definitive agreement to acquire a majority interest in Broadlane, Inc., a leading provider of supply chain management and clinical workforce management services to the U.S. healthcare industry. Under the terms of the agreement, Broadlane’s senior management team will continue to retain a significant ownership interest in the company. Financing for the transaction will be provided by Jefferies Finance LLC. Completion of the transaction, which remains subject to customary closing conditions, is expected to occur in the third quarter of 2008. No financial terms were disclosed.
Dr. Charles E. Saunders, Broadlane’s Chairman and Chief Executive Officer, will step down from his current position once the transaction closes and will be succeeded by David Ricker, the company’s Founder, President and Chief Operating Officer.
Ian Sacks, a Management Partner at TowerBrook, commented, “Over the past eight years, Broadlane has grown significantly and diversified to become a leading technology-enabled healthcare services company focused on helping healthcare providers manage and reduce costs associated with their supply chains and clinical workforces. We believe that Broadlane’s customer-centric approach, unique outsourcing model, and operational expertise have enabled it to maximize real cost savings for provider clients as they face ever-increasing cost inflation and revenue pressure. We are looking forward to working with Broadlane’s senior management team and building on its strong track record as the company enters its next phase of growth.”
Dr. Charles E. Saunders, Broadlane’s Chairman and CEO, commented, “Over the past several years, we have successfully grown and diversified Broadlane’s business from its roots as a division of Tenet Healthcare. Having achieved this strategic goal, I will be stepping down upon the closing of the transaction and will be succeeded by David Ricker, who has grown from one of the Company’s initial founders to become our President and COO. I have full confidence in David’s ability to assume the CEO role and lead Broadlane into the future.”
David Ricker, President and COO of Broadlane, commented, “I would like to thank Chuck for his hard work and dedication to Broadlane – he has played a significant role in the company’s many achievements and we wish him every success in the future.”
Ricker added: “In looking for a new equity partner, we were attracted to TowerBrook’s significant expertise in the healthcare industry. The senior management team is excited to work with TowerBrook to fulfill Broadlane’s tremendous growth potential.”
About TowerBrook Capital Partners
TowerBrook Capital Partners L.P. is a private equity firm with in excess of $3.5 billion of capital under management. The firm has offices in New York and London and focuses on making investments in North American and European companies. TowerBrook primarily pursues control-oriented private equity investments in large and middle market companies, partnering with highly capable management teams, often in situations characterized by complexity. For more information, visit www.towerbrook.com.
About Broadlane
Broadlane is a leading technology-oriented healthcare services company that reduces cost and creates operational efficiencies for thousands of acute care hospitals, ambulatory care facilities, physician practices and other healthcare providers in the United States. Its core services include supply chain management and clinical workforce management services.
Broadlane’s comprehensive supply chain services include:
— High-powered national and custom contracting for supplies, pharmaceuticals, equipment and purchased services
— Innovative Procurement Services and purchase transaction management
— Clinical Services for managing clinical preference items and operating room and cath lab spending
— Comprehensive Materials Management Services – including outsourcing
— Informatics – benchmarking, advanced analytics and reporting
— Supply chain technology and e-commerce
Broadlane’s clinical workforce management services address nurses and allied healthcare practitioners and include:
— External shift and agency management services
— Internal shift management, including electronic shift auctions
— Regional nurse float pool management and internal agency management
— E-commerce workforce exchange linking healthcare providers, clinical staff and agencies, enabling efficient shift management and fulfillment and reconciliation
Broadlane’s clients include leading providers such as Advocate Health Care, Ascension Health, Beaumont Hospitals, CHRISTUS Health, Continuum Health Partners, Kaiser Permanente, Kindred Healthcare, MedCath Corporation, New Hanover Regional Medical Center, Sisters of Charity of Leavenworth Health System, St. Luke’s Episcopal Health System, Tenet Healthcare, The Health Alliance of Greater Cincinnati, US Oncology and UMass Memorial Health Care.
The company is headquartered in Dallas with offices in Cincinnati, Detroit, Houston, New York City and Oakland. For more information, visit www.broadlane.com.
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