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.