American Renal Holdings Reaches Agreement to be Acquired by Management and Centerbridge Partners, L.P. from Pamlico Capital
American Renal Holdings (“ARH”), through its affiliate, American Renal Associates, a national provider of kidney dialysis services, and Pamlico Capital announced today that affiliates of Centerbridge Partners, L.P. (“Centerbridge”) entered into an agreement to acquire ARH in partnership with ARH management. ARH and its physician partners own and operate 83 dialysis clinics treating more than 5,500 patients across the United States.
“We are very excited to enter this next stage of our company’s growth in partnership with Centerbridge, a leading private equity firm,” said Joseph Carlucci, Chief Executive Officer and Co-Founder of ARH. “Going forward, ARH’s strategy will remain unchanged as our staff and physician partners continue to provide excellent care to the patients that choose our centers and build on our best-in-class reputation for outstanding clinical care in dialysis services.”
Steven Silver, Senior Managing Director of Centerbridge, said “We look forward to our partnership with ARH, a growing firm with a strong business model that provides superior dialysis services to its patients. We believe that ARH is uniquely positioned to benefit from the dynamic state of our nation’s healthcare system and are excited about ARH’s strong future prospects.”
Neal Morrison, Partner of Pamlico Capital (formerly known as Wachovia Capital Partners), ARH’s lead institutional investor and largest shareholder, said “Our successful partnership with management, which began in 2004, is evidenced by ARH’s growth into one of the largest dialysis providers in the country focused exclusively on partnerships with physicians, while providing best-in-class patient care. We believe this company is on the path for continued success and we wish them well.”
The closing of the transaction is subject to regulatory approvals and other customary conditions, and is expected to close in the second quarter of 2010.
ARH and Pamlico Capital were advised by Alston & Bird LLP (legal advisor) and McGuire Woods LLP (healthcare regulatory counsel). BofA Merrill Lynch and Wells Fargo Securities served as financial advisors to ARH.
Centerbridge was advised by Simpson Thacher & Bartlett LLP (legal advisor) and McDermott Will & Emery (healthcare regulatory counsel). Barclays Capital served as a financial advisor to Centerbridge.
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Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of almost $3.5 billion. For additional information, please visit www.pamlicocapital.com.