|[December 31, 2012]
GTCR Completes Acquisition of Correctional Healthcare Companies
CHICAGO --(Business Wire)--
GTCR, a leading private equity firm, announced today that it has
completed the acquisition of Correctional Healthcare Companies ("CHC"),
a leading outsourced healthcare provider to correctional facilities.
GTCR is partnering with CHC CEO Doug Goetz, COO Don Houston and managed
care industry executive Dale Wolf to grow and expand the business.
This investment results from GTCR's proactive efforts with Mr. Wolf and
Jessamine Healthcare, a management startup with Mr. Wolf, targeted at a
range of healthcare cost containment and payor businesses. Mr. Wolf,
former CEO of Coventry Health Care, has joined CHC as Executive Chairman
as part of the transaction.
CHC provides industry-leading inmate healthcare services to jails and
prisons across the country, and is the only outsourced provider
addressing the full spectrum of healthcare needs across the corrections
market. The Company's combination of facility and community-based
operations creates a continuity of care across the different stages of
the corrections process, enabling CHC to reduce recidivism, lower costs
and mitigate risk for its clients.
The Company provides fully-staffed managed healthcare to correctional
facilities, serving over 64,000 inmates in more than 250 correctional
facilities across 26 states. Additionally, the Company provides
community-based mental health services to over 20,000 probationers and
parolees annually, and assists more than 250 local courts with their
probation management services.
"We are extremely pleased to complete the acquisition of CHC," said
David Katz, Managing Director at GTCR. "GTCR's extensive experience
inesting in both healthcare provider and payor businesses enabled us to
develop a unique perspective on CHC and its growth opportunities going
forward. We look forward to partnering with Dale, Doug, Don and the rest
of CHC's management team to continue to expand the business through
organic growth and acquisitions."
"We are excited to begin a new relationship with an equity partner
committed to our growth," stated Doug Goetz, CEO of CHC. "We believe
GTCR's established track-record investing in the healthcare industry,
coupled with Dale's extensive managed care experience, will help CHC to
realize its growth potential across the full breadth of correctional
"CHC provides its clients with a unique cost containment solution that
offers high quality healthcare services while allowing facility
operators to focus on their core operations," added Dale Wolf, Executive
Chairman of CHC. "Doug Goetz and his team have built an exceptional
business, and I look forward to working with them to help drive CHC's
Latham & Watkins served as legal counsel to GTCR. NXT Capital,
CapitalSource, Bank of Ireland and Prospect Capital provided committed
debt financing in connection with the transaction. GTCR's investment in
CHC was made from GTCR Fund X, a private equity fund with $3.25 billion
of committed capital.
Founded in 1980, GTCR is a leading private equity firm focused on
investing in growth companies in the Financial Services & Technology,
Healthcare and Information Services & Technology industries. The
Chicago-based firm pioneered the "Leaders Strategy" - finding and
partnering with management leaders as the critical first step in
identifying, acquiring and building market-leading companies through
acquisitions and organic growth. Since its inception, GTCR has invested
more than $10 billion in over 200 companies. For more information,
please visit www.gtcr.com.
About Correctional Healthcare Companies
Correctional Healthcare Companies, (CHC) is a national provider of
correctional healthcare solutions that improve public safety, manage
risk, reduce recidivism and extend budgetary resources in the facilities
and communities in which it works. CHC's integrated healthcare solutions
address a wide range of client and correctional needs including inmate
healthcare, outpatient treatment, mental health, behavioral programming
and treatment case management services.
CHC is proud to support the goals of its criminal justice customers by
providing a total correctional healthcare program that addresses
offender and agency needs in pre-custody, custody and post-custody
settings. For more information, please visit www.correctioncare.com.
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