MVP News
Air Medical Group Holdings Announces Recapitalization by Bain Capital
8/26/2010
Air Medical Group Holdings (“Air Medical Group” or “AMGH”) announced today that it has signed a definitive agreement under which a Bain Capital affiliate will lead a recapitalization of the company in partnership with management and current investors Brockway Moran & Partners and MVP Capital Partners. Air Medical Group operates through three subsidiaries, Air Evac Lifeteam, Med-Trans Corporation and EagleMed, which collaborate with leading medical centers and EMS agencies to offer improved access to emergency medical care, with approximately 80% of the company’s patients originating in rural communities. Each subsidiary will continue to operate independently, serving their respective segments of the market. Terms of the agreement were not disclosed.
AMGH, the largest independent provider of air medical services in the world, operates 144 base locations across 25 states, utilizing a fleet of over 170 helicopters and airplanes. An industry leader in safety, Air Medical Group is scheduled to achieve night vision goggle implementation across 100% of its locations in the next 60 days, with a significant majority of bases also accredited by the Commission on Accreditation of Medical Transport Systems (“CAMTS”), reflecting the company’s commitment to aviation safety and outstanding patient care.
“My colleagues, Seth Myers, President and CEO of Air Evac Lifeteam, Larry Bugg, President of EagleMed, and I are excited to enter the next stage of growth alongside Bain Capital, which brings significant resources and healthcare expertise to the AMGH organization. We look forward to continuing to enhance access to definitive care through bringing our life-saving services to outlying communities in need,” said Fred Buttrell, President and CEO of Med-Trans. “Nothing will change from a customer standpoint, as we will continue to serve our customers and constituents in the same manner, and with the same level of quality care as we always have. Bain Capital’s resources and involvement position the company and its employees for sustained future success.”
“Air ambulances play a vital role in the rural health care infrastructure since many Americans live more than a one hour drive away from acute medical care," said John Connaughton, a Managing Director at Bain Capital. "We are greatly impressed by the quality of Air Medical Group’s management team, industry leadership position and track record of delivering high quality, innovative and cost effective healthcare. We look forward to working alongside our new partners to continue AMGH’s growth and expand its reach and service delivery capabilities."
“It has been a pleasure to work with the company’s management team and dedicated employees over the last six years to expand the organization and make significant investments in the aviation and clinical care operations. We welcome a world-class partner in Bain Capital and look forward to continuing our association with Air Medical Group,” commented Mike Moran, a Managing Partner at Brockway Moran.
Barclays Capital and Moelis & Co. are acting as financial advisors, and Greenberg Traurig is acting as legal advisor to Air Medical Group. Morgan Stanley is acting as lead financial advisor, BofA Merrill Lynch and Citi as financial advisors, and Kirkland & Ellis as legal advisor to Bain Capital. Debt financing will be provided by BofA Merrill Lynch, Barclays Capital, Citi, and Morgan Stanley.
The transaction is expected to close during the third or fourth quarter of 2010.
About Air Medical Group Holdings, Inc.
Air Medical Group is the largest independent provider of air medical services in the world, operating through three subsidiaries, Air Evac Lifeteam, Med-Trans Corporation and EagleMed, which collaborate with leading hospital systems, medical centers and EMS agencies to offer improved access to emergency medical care.
Air Evac Lifeteam (www.lifeteam.net) is a West Plains, Missouri-based provider of air ambulance services to rural communities across 14 states. Air Evac Lifeteam has developed a highly successful and innovative community-based model which has grown to 93 bases and attracted over 850,000 members in support of its presence in rural communities. With over 200,000 patients transported since its founding in 1985, Air Evac’s aviation operations are “Gold” rated by the Aviation Research Group (“ARG/US”) and, for each of the last three years, the company has received the Helicopter Association International (“HAI”) Operator’s Safety Award for a safety record twice as good as the helicopter industry average. Air Evac is the largest air medical operator under one name accredited by CAMTS.
Med-Trans (www.med-trans.net), headquartered in Dallas, Texas, is a leading national air medical provider focused on establishing partnerships with hospital systems, medical centers and EMS agencies through 20 programs, representing 35 bases, across 15 states. Med-Trans is able to offer customized air ambulance programs through alternative delivery/shared resource models, community based models or traditional hospital-based models. Med-Trans operates over 40 helicopters, comprised predominantly of Bell 407s and, on a select basis, EC 135s. The company is “Gold” rated by ARG/US and is an industry leader in safety.
EagleMed (www.flyeaglemed.com), headquartered in Wichita, Kansas, is a leading community-based provider of air ambulance programs across the central U.S. EagleMed currently operates 16 community-based locations across three states, utilizing a fleet of over 20 Eurocopter helicopters and Hawker Beechcraft airplanes. The company is CAMTS accredited and a former recipient of the Association of Air Medical Services’ Fixed-Wing Safety Award.
About Bain Capital, LLC
Bain Capital, LLC (www.baincapital.com) is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, high-yield assets and mezzanine capital with approximately $64 billion in assets under management. Bain Capital has a team of over 300 professionals dedicated to investing and to supporting its portfolio companies. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 300 companies in a variety of industries around the world. Bain Capital has a long history of investing in leading healthcare companies, having made over 50 healthcare investments across a broad range of sectors including service providers, facilities, life sciences, devices, and distribution. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Hong Kong, Shanghai, Tokyo and Mumbai.
About Brockway Moran & Partners
Brockway Moran & Partners (www.brockwaymoran.com) is a private equity firm with more than $1.3 billion of capital under management. The firm acquires growth-oriented middle market companies in partnership with exceptional management teams. Brockway Moran focuses on businesses with significant growth opportunities either through internal expansion, industry consolidation or innovative business strategies. The principals of the firm have a record of productively working with management teams to build companies into larger and more diverse enterprises. Brockway Moran & Partners invests in a broad spectrum of industries with significant experience in consumer, industrial and service businesses. Since 1998, the firm has completed over 60 acquisitions.
About MVP Capital Partners
MVP Capital Partners (www.mvpcapitalpartners.com) is a private equity firm based outside of Philadelphia, PA, which focuses on investing in middle market companies with $10-100 million in revenues through buyouts, recapitalizations and expansion capital financings. Founded in 1987, the firm manages over $200 million in capital. MVP leverages its professionals’ expertise and its capital by partnering with accomplished management teams to build successful companies. Deploying a sector-diversified portfolio strategy, MVP invests in industries including business services, healthcare, publishing and media, manufacturing, and consumer-related companies.
Contacts:
For Bain Capital, LLC
Alex Stanton
+1 (212) 780-0701
astanton@StantonPRM.com
For MVP Capital Partners
Ryan Northington
+1 (610) 254-2999
RSN@mvpcap.com
8/26/2010
Air Medical Group Holdings (“Air Medical Group” or “AMGH”) announced today that it has signed a definitive agreement under which a Bain Capital affiliate will lead a recapitalization of the company in partnership with management and current investors Brockway Moran & Partners and MVP Capital Partners. Air Medical Group operates through three subsidiaries, Air Evac Lifeteam, Med-Trans Corporation and EagleMed, which collaborate with leading medical centers and EMS agencies to offer improved access to emergency medical care, with approximately 80% of the company’s patients originating in rural communities. Each subsidiary will continue to operate independently, serving their respective segments of the market. Terms of the agreement were not disclosed.
AMGH, the largest independent provider of air medical services in the world, operates 144 base locations across 25 states, utilizing a fleet of over 170 helicopters and airplanes. An industry leader in safety, Air Medical Group is scheduled to achieve night vision goggle implementation across 100% of its locations in the next 60 days, with a significant majority of bases also accredited by the Commission on Accreditation of Medical Transport Systems (“CAMTS”), reflecting the company’s commitment to aviation safety and outstanding patient care.
“My colleagues, Seth Myers, President and CEO of Air Evac Lifeteam, Larry Bugg, President of EagleMed, and I are excited to enter the next stage of growth alongside Bain Capital, which brings significant resources and healthcare expertise to the AMGH organization. We look forward to continuing to enhance access to definitive care through bringing our life-saving services to outlying communities in need,” said Fred Buttrell, President and CEO of Med-Trans. “Nothing will change from a customer standpoint, as we will continue to serve our customers and constituents in the same manner, and with the same level of quality care as we always have. Bain Capital’s resources and involvement position the company and its employees for sustained future success.”
“Air ambulances play a vital role in the rural health care infrastructure since many Americans live more than a one hour drive away from acute medical care," said John Connaughton, a Managing Director at Bain Capital. "We are greatly impressed by the quality of Air Medical Group’s management team, industry leadership position and track record of delivering high quality, innovative and cost effective healthcare. We look forward to working alongside our new partners to continue AMGH’s growth and expand its reach and service delivery capabilities."
“It has been a pleasure to work with the company’s management team and dedicated employees over the last six years to expand the organization and make significant investments in the aviation and clinical care operations. We welcome a world-class partner in Bain Capital and look forward to continuing our association with Air Medical Group,” commented Mike Moran, a Managing Partner at Brockway Moran.
Barclays Capital and Moelis & Co. are acting as financial advisors, and Greenberg Traurig is acting as legal advisor to Air Medical Group. Morgan Stanley is acting as lead financial advisor, BofA Merrill Lynch and Citi as financial advisors, and Kirkland & Ellis as legal advisor to Bain Capital. Debt financing will be provided by BofA Merrill Lynch, Barclays Capital, Citi, and Morgan Stanley.
The transaction is expected to close during the third or fourth quarter of 2010.
About Air Medical Group Holdings, Inc.
Air Medical Group is the largest independent provider of air medical services in the world, operating through three subsidiaries, Air Evac Lifeteam, Med-Trans Corporation and EagleMed, which collaborate with leading hospital systems, medical centers and EMS agencies to offer improved access to emergency medical care.
Air Evac Lifeteam (www.lifeteam.net) is a West Plains, Missouri-based provider of air ambulance services to rural communities across 14 states. Air Evac Lifeteam has developed a highly successful and innovative community-based model which has grown to 93 bases and attracted over 850,000 members in support of its presence in rural communities. With over 200,000 patients transported since its founding in 1985, Air Evac’s aviation operations are “Gold” rated by the Aviation Research Group (“ARG/US”) and, for each of the last three years, the company has received the Helicopter Association International (“HAI”) Operator’s Safety Award for a safety record twice as good as the helicopter industry average. Air Evac is the largest air medical operator under one name accredited by CAMTS.
Med-Trans (www.med-trans.net), headquartered in Dallas, Texas, is a leading national air medical provider focused on establishing partnerships with hospital systems, medical centers and EMS agencies through 20 programs, representing 35 bases, across 15 states. Med-Trans is able to offer customized air ambulance programs through alternative delivery/shared resource models, community based models or traditional hospital-based models. Med-Trans operates over 40 helicopters, comprised predominantly of Bell 407s and, on a select basis, EC 135s. The company is “Gold” rated by ARG/US and is an industry leader in safety.
EagleMed (www.flyeaglemed.com), headquartered in Wichita, Kansas, is a leading community-based provider of air ambulance programs across the central U.S. EagleMed currently operates 16 community-based locations across three states, utilizing a fleet of over 20 Eurocopter helicopters and Hawker Beechcraft airplanes. The company is CAMTS accredited and a former recipient of the Association of Air Medical Services’ Fixed-Wing Safety Award.
About Bain Capital, LLC
Bain Capital, LLC (www.baincapital.com) is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, high-yield assets and mezzanine capital with approximately $64 billion in assets under management. Bain Capital has a team of over 300 professionals dedicated to investing and to supporting its portfolio companies. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 300 companies in a variety of industries around the world. Bain Capital has a long history of investing in leading healthcare companies, having made over 50 healthcare investments across a broad range of sectors including service providers, facilities, life sciences, devices, and distribution. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Hong Kong, Shanghai, Tokyo and Mumbai.
About Brockway Moran & Partners
Brockway Moran & Partners (www.brockwaymoran.com) is a private equity firm with more than $1.3 billion of capital under management. The firm acquires growth-oriented middle market companies in partnership with exceptional management teams. Brockway Moran focuses on businesses with significant growth opportunities either through internal expansion, industry consolidation or innovative business strategies. The principals of the firm have a record of productively working with management teams to build companies into larger and more diverse enterprises. Brockway Moran & Partners invests in a broad spectrum of industries with significant experience in consumer, industrial and service businesses. Since 1998, the firm has completed over 60 acquisitions.
About MVP Capital Partners
MVP Capital Partners (www.mvpcapitalpartners.com) is a private equity firm based outside of Philadelphia, PA, which focuses on investing in middle market companies with $10-100 million in revenues through buyouts, recapitalizations and expansion capital financings. Founded in 1987, the firm manages over $200 million in capital. MVP leverages its professionals’ expertise and its capital by partnering with accomplished management teams to build successful companies. Deploying a sector-diversified portfolio strategy, MVP invests in industries including business services, healthcare, publishing and media, manufacturing, and consumer-related companies.
Contacts:
For Bain Capital, LLC
Alex Stanton
+1 (212) 780-0701
astanton@StantonPRM.com
For MVP Capital Partners
Ryan Northington
+1 (610) 254-2999
RSN@mvpcap.com