Harris Williams & Co. Advises Cogent Healthcare, Inc. in its merger with Hospitalists Management Group, LLC, a portfolio company of AEA Investors LP.
Harris Williams & Co. announces the merger of Cogent Healthcare, Inc. (Cogent) with Hospitalists Management Group, LLC (HMG), a portfolio company of AEA Investors LP (AEA). The transaction closed on May 4, 2011. Harris Williams & Co. acted as the exclusive advisor to Cogent. The transaction was executed by Turner Bredrup, Cheairs Porter, Andy Dixon, and Dusty Lieb from the firm's Healthcare & Life Sciences (HCLS) Group.
"The hospitalist sector is the fastest growing medical specialty in the U.S., and we continue to see strong M&A deal flow in the space as hospitals seek to more effectively manage risk within the post-reform environment and Accountable Care Organizations ("ACOs")," stated Turner Bredrup, a managing director and head of Harris Williams & Co.'s Healthcare & Life Sciences Group. "Harris Williams & Co. is proud to have advised on transactions involving two of the leading hospitalist management companies, both Cogent and HMG, in the last year."
Cogent, founded in 1997, is a pioneer and leader in the field of hospital medicine and critical care medicine. The company partners with hospitals to build and manage high performing hospitalist programs and intensivist programs. In order to improve the care and efficiency of hospitalized patients, the Cogent model offers a comprehensive System of Care that supports hospitalists with structure, a coordinated care team, data driven processes, rigorous ongoing training and experienced leadership. Cogent physicians lead the profession by setting best practices for hospital medicine and providing a national mentoring program.
HMG was founded in 1993 by Dr. Stephen L. Houff. Dr. Houff, one of the true pioneers in the field of hospital medicine, forged the beginnings of a hospitalist service in Columbus, OH. Today, HMG has partnered with more than 60 hospitals in 18 states. HMG's growth has been organically driven through new partnership startups and referrals. HMG supports more than 500 physicians and mid-level providers who continue to embody the service, quality and dedication upon which the organization is based. Within the medical systems it serves, HMG implements customized programs, yields measurable outcomes and drives continuous innovation.
AEA Investors was founded in 1968 by Rockefeller, Mellon and Harriman family interests in partnership with S.G. Warburg & Co. Today its investors known as "Participants" include many of the world's leading industrial families, business executives and influential institutional investors. AEA has investment professionals operating from offices in New York, London, Munich, Hong Kong, and Shanghai. It manages approximately $5 billion of invested and committed capital in funds dedicated to three purposes: (1) buyouts of middle market companies operating principally in four sectors - industrial, specialty chemical, consumer products and services, (2) buyouts of smaller middle market companies in these same sectors, and (3) mezzanine and senior debt investments.