New Heritage Capital is pleased to announce that it has completed the successful sale of REACH Air Medical Group Holdings, LLC to Air Medical Group Holdings, Inc.
REACH Air Medical Services, LLC (“REACH”) is a leading provider of emergency air medical transport services. REACH provides the highest quality patient care through 18 bases in California, Oregon and Texas utilizing a fleet of 29 rotor-wing and fixed-wing aircraft.
In 2009, REACH faced significant growth prospects as a result of inbound demand for service from potential hospital customers in both adjacent California markets and markets as far away as Texas. The Company desired to spend more than $20 million on new aircraft to capture growth opportunities without increasing its debt, and without relinquishing control of the business.
Through a Structured Equity investment, Heritage provided capital that allowed the Company to de-leverage, invest in aircraft and acquisitions for growth, while allowing the shareholders to maintain control of the Company. Heritage’s experience as a value-added partner to founder-owned businesses gave the owners the confidence that Heritage would help REACH achieve its growth objectives.
Over the last three years, Heritage and management have continued to capitalize on REACH’s best-in-class patient care to establish the Company as a premier air medical transport provider. Since Heritage closed the investment at the end of 2009, REACH has grown annual transports from approximately 4,000 to more than 7,000 via a combination of same-base growth, the opening of five new greenfield airbases in Southern California and Texas, and a significant add-on acquisition in Oregon.
A competitive sale process led to Air Medical Group Holdings, Inc., a strategic buyer owned by Bain Capital, acquiring REACH in early December, 2012.
New Heritage Capital focuses on partnering with growing privately-held businesses through a unique structure called The Private IPO®. Heritage’s Private IPO® structure provides shareholders with significant liquidity while allowing them to maintain voting control and maximize future equity ownership.