H.I.G. Capital Finalizes Sale of PMSI [Health & Beauty Close – Up]

H.I.G. Capital, a global private equity investment firm with more than $13 billion of equity capital under management, announced that it has completed the sale of its portfolio company PMSI to an affiliate of Kelso & Company and StoneRiver Group.

Simultaneous with the sale, the Company will be merged with Progressive Medical to create an industry provider of customized and clinically-focused solutions to manage pharmacy benefit management ("PBM"), durable medical equipment, home health care, transportation, translation and Medicare compliance solutions for workers' compensation industry, the Company noted in a release.

After acquiring PMSI in 2008 from AmerisourceBergen, H.I.G. said that it partnered with management to invest significant resources in PMSI to rebuild its infrastructure, transform its service offering and create a PBM solution. The revamped client value proposition resonated in the marketplace and propelled exponential revenue and EBITDA growth during H.I.G.'s ownership. The transaction adds to H.I.G.'s longstanding track record of successful investments in the workers' compensation and healthcare services industries.

Based in Tampa, FL, and founded in 1976, PMSI is an experienced company focused on workers' compensation cost containment. H.I.G. said that the Company develops solutions to control the growth of medical costs in workers' compensation and provides focus, experience, analytics and technology needed to successfully deliver workers' compensation benefits for insurance companies and third party administrators in the country.

"H.I.G. has been an outstanding and committed partner to the PMSI management team. Together, we recognized the inherent value in PMSI's foundation, established a clear strategic vision and invested over $50 million in human capital, new programs, operating and IT infrastructure to successfully create a highly effective end-to-end client solution," said Eileen Auen, CEO and Chairman of PMSI.

"PMSI marks H.I.G.'s second highly successful partnership with executives Eileen Auen, Jay Krueger and Steven Palmer. We were thrilled to partner with them and the rest of the PMSI management team to support their exceptional value-creation over the past five years," said Camilo Horvilleur, Principal of H.I.G. "Management flawlessly executed on its strategic initiatives and successfully re- positioned the Company to deliver a highly differentiated client value proposition. As a result, the Company generated phenomenal revenue and EBITDA growth, which resulted in an outstanding investment outcome for PMSI management, H.I.G. and its investors."

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