Brentwood Capital Advises Memphis Managed Care Corporation On Sale of Health Plan to AMERIGROUP
AMERIGROUP Corporation (NYSE: AGP) and the controlling members of Memphis Managed Care Corporation have approved the sale of Memphis Managed Care Corporation’s assets, including TLC Family Care Health Plan, to AMERIGROUP Community Care of Tennessee. Brentwood Capital Advisors LLC (“BCA”) served as exclusive financial advisor to Memphis Managed Care Corporation in the transaction.
The transaction, which was announced September 5, 2007, is scheduled to close in the fourth quarter of 2007 and is subject to regulatory approval by the State of Tennessee.
“Brentwood Capital Advisors’ assistance in positioning Memphis Managed Care Corporation for maximum value and structuring the transaction to best meet the needs of our owners was invaluable," said Al King, Chief Executive Officer of Memphis Managed Care Corporation. “As our advisor, BCA ensured that our owners received an attractive valuation through a fair and competitive process. We are very pleased with this transaction and excited to be partnering with AMERIGROUP.”
Under the terms of the purchase agreement, AMERIGROUP will acquire substantially all of the assets of Memphis Managed Care Corporation, which include TLC Family Care Healthplan and MidSouth Health Solutions, an affiliated firm that offers disease management and case management services. AMERIGROUP agreed to pay Memphis Managed Care Corporation $12 million at the close of the transaction and additional consideration of approximately $18.25 million should AMERIGROUP bid successfully to enter the TennCare program as a full-risk contractor in West Tennessee. In addition, Memphis Managed Care Corporation would retain net capital and surplus of approximately $36 million in the transaction.
The Memphis Managed Care Corporation assignment exemplifies Brentwood Capital Advisors' focus on providing high quality investment banking advice to leading private healthcare and business services companies. Memphis Managed Care Corporation joins Leade Health, Passport Health Communications, BlueCross BlueShield of Tennessee, HealthSpring, Psychiatric Solutions, and Symbion as another leading healthcare services company advised by BCA.
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About Brentwood Capital Advisors LLC
Brentwood Capital Advisors LLC, founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee. BCA specializes in providing mergers and acquisition and capital raising advisory services to middle market companies. More information about Brentwood Capital Advisors can be found at: http://www.brentwoodcapital.com/
About Memphis Managed Care Corporation
Memphis Managed Care Corporation, based in Memphis, TN, is the parent company of TLC Family Care Health Plan and MidSouth Health Solutions. TLC Family Care Health Plan serves approximately 167,000 low-income Tennessee residents who are enrolled in the State's TennCare program and who live in Memphis and the surrounding West Tennessee region. TLC, the largest of the four health plans currently participating in TennCare in West Tennessee, maintains an extensive healthcare network that includes more than 3,000 doctors, hospitals and other healthcare providers, and employs more than 200 people in the Memphis area. MidSouth Health Solutions offers disease management and case management services. Memphis Managed Care Corporation was founded and owned by the UT Medical Group, the private practice arm of the University of Tennessee Health Science Center's medical faculty, and the Shelby County Health Care Corp., the nonprofit that operates the Regional Medical Center at Memphis. More information about Memphis Managed Care Corporation and its affiliates can be found at http://www.mmcc-tlc.com/.
About AMERIGROUP Corporation
AMERIGROUP Corporation (NYSE – AGP), headquartered in Virginia Beach, Virginia, improves healthcare access and quality for low-income Americans by developing innovative managed health services for the public sector. Through its subsidiaries, AMERIGROUP Corporation serves more than 1.5 million people in the District of Columbia, Florida, Georgia, Maryland, New Jersey, New York, Ohio, Tennessee, Texas and Virginia. For more information, visit http://www.amerigroupcorp.com/.
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