PRESS RELEASE
For Immediate Release
Contact: Chris Tofalli
Phone: 914-834-4334
Linden to Add Focused
Health Solutions to Portfolio
Healthcare and Life Science-Focused Private Equity Firm to Acquire Leading Provider
of Disease Management Services
Chicago, Illinois (June 1, 2006) - Linden LLC, a private equity firm that focuses on investments in the healthcare and life science sector, announced today that it has acquired Focused Health Solutions, Inc. (“FHS”), a leading provider of disease management services located in Deerfield, Illinois. Terms of the transaction were not disclosed.
Founded in 2000, FHS has become one of the ten largest independent companies in the growing
disease management industry. FHS has over 130 employees who work primarily with self-insured
Fortune 1000 companies to reduce healthcare costs through highly targeted disease management
programs. FHS designs a personalized program for each of its clients’ employees that sets goals,
encourages healthy behaviors and reduces employee use of high-cost medical resources.
FHS offers its enrollees a unique disease management model built upon: i) opt-in enrollment, ii)
remote telehealth monitoring and iii) frequent nurse interactions. FHS employs a “high touch”
approach whereby its staff of experienced nurses interacts directly with enrollees.
"We are pleased to join the growing $1.2 billion disease management industry through our
investment in Focused Health Solutions,” said Tony Davis, Managing Director at Linden.
“We are particularly excited to partner with the management team as FHS enters a new phase
of growth as a stand alone entity. FHS’s customized approach and
exclusive focus on self-insured employers have positioned it well to capitalize
on employers’ concerns over rising healthcare costs. We look forward to
supporting the team as they
look to further broaden FHS’s service offering and add to its blue chip roster of clients."
“Linden’s investment in FHS demonstrates our firm’s targeted strategy of investing in non-core
divisions of healthcare companies where our operating expertise enables us to partner with
management teams to enhance value,” said Eric Larson, Founder and Managing Director of Linden.
“Our long-standing relationships with its management team, our ability to consummate the transaction
quickly, and our industry knowledge made us the appropriate partner for FHS.”
Merrill Lynch Capital provided the Senior Credit Facility and Babson Capital Management LLC provided mezzanine
financing for the transaction.
About Focused Health
Solutions, Inc.
Focused Health Solutions is a leading national provider of customized disease management services
to large, self-insured employers. Founded in 2000, the Deerfield, IL based company has a senior
management team with over 100 years of collective experience in the healthcare industry and boasts
a blue chip customer base. FHS combines innovative data analysis tools, disease-specific clinical
pathways, proprietary telehealth technology, and deep clinical expertise to reduce client healthcare
costs for employees, their dependents, and pre-Medicare retirees who have chronic health conditions.
The Company’s programs are targeted toward individuals who have been diagnosed with costly,
chronic medical conditions – such as asthma, diabetes, coronary artery disease, hypertension,
behavioral disorders, and back and neck pain – that can be managed effectively by a comprehensive,
closely-monitored disease management program. The FHS disease management model integrates
sophisticated and proprietary systems with care management algorithms and experienced nursing
personnel organized by disease category to produce quantifiable health and economic benefits for
its program enrollees and employer clients. For more information visit
www.focusedhealthsolutions.com.
About Linden LLC
Linden is a private equity group focused exclusively on the healthcare and life science industries.
Formed in 2002 as a continuation of a successful investment strategy developed by its principals at
First Chicago Equity Capital (“FCEC”), Linden’s strategy is based upon three key elements: i) a
healthcare industry specialization, ii) an Operating Partner-focused model and iii) a foundation
of corporate relationships. In addition to investing in independent businesses, Linden’s expertise
is in transforming corporate-controlled, non-core operations into entrepreneurial, independent
businesses. To pursue healthcare and life science buyout opportunities of all sizes, Linden
leverages both its own capital through Linden Capital Partners for middle market deals and that
of Madison Dearborn Partners through a formal alliance for larger transactions. For additional
information about Linden, please visit
www.lindenllc.com.
About Merrill Lynch
Capital
Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., is a
leading commercial finance business providing a broad range of structured financing solutions
to middle market companies nationwide. Based in Chicago and with regional offices throughout
the country, Merrill Lynch Capital is focused on four market segments—corporate finance,
equipment finance, healthcare finance and real estate finance. The Healthcare Finance Group
of Merrill Lynch Capital provides senior financing solutions for middle market healthcare
companies, offering cash flow, asset, life sciences related and real estate based credit facilities
and junior secured debt, and equity co-investments. The typical transaction size for senior debt
is between $10 million and $250 million.
About Babson Capital
Babson Capital and its subsidiaries manage over $94 billion as of March 31, 2006 for large
investors in the U.S. and abroad. The firm offers a wide range of absolute return, co-investing,
financing and customized mandates utilizing equity, fixed-income and derivative instruments.
Based in Boston and Springfield, Massachusetts, the firm has six additional offices in the U.S.
and an indirect subsidiary, Babson Capital Europe Limited, in London. Babson Capital is a member
of the MassMutual Financial Group.
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