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.
THE COMPANY:
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.
THE SITUATION:
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.
THE SOLUTION:
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.
THE INVESTMENT:
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.
THE OUTCOME:
A competitive sale process led to Air Medical Group Holdings, Inc., a strategic buyer owned by Bain Capital, acquiring REACH in early December, 2012.
ABOUT HERITAGE:
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.
