Goodwin represented Frazier Healthcare Partners, a leading private equity firm based in Seattle, in its announced definitive subscription agreement with Providence Service Corporation pursuant to which Frazier will subscribe for a 60% equity interest in Matrix Medical Network, based on an aggregate enterprise value of Matrix of approximately $537.5 million. Following closing of the transaction, Providence will retain a 40% equity interest in Matrix and have representatives on Matrix’s board of directors.
Founded in 1991, Frazier Healthcare Partners is a leading provider of growth capital to healthcare companies. The firm has over $2.9 billion in committed capital under management and has made investments in over 170 healthcare companies with investment types ranging from company creation and venture capital to growth buyouts and leveraged recapitalizations.
The Providence Service Corporation is a holding company whose subsidiaries provide critical healthcare and workforce development services, comprised of non-emergency transportation services, workforce development services, legal offender rehabilitation services, health assessment services and care management services in the United States and abroad.
Acquired by Providence in 2014 for approximately $393 million, Matrix has strengthened its strategic value through a variety of initiatives under the Matrix and Providence leadership teams. In 2015, Matrix generated $217.4 million of revenue and operating income of $22.1 million, which included $29.5 million of depreciation and amortization.
The Goodwin team advising Frazier included partners Chris Nugent (Private Equity) and Jennifer Bralower (Debt Finance) and associates Michael Andrescavage, Matthew Cognetti (Private Equity), Kevin Grumberg (Debt Finance) with assistance from partner Bill Weiss and associate Kyle Pine (Tax).
For more information on the transaction, please view the press release.