QHR Health Becomes Independent Through Acquisition by Grant Avenue Capital
Brentwood Capital Advisors (“BCA”) is pleased to announce its role in serving as exclusive financial advisor to Grant Avenue Capital, LLC (“Grant Avenue”), a leading healthcare-focused private equity firm, in its recently completed acquisition of QHR Health (or the “Company”). QHR Health will now operate as an independent portfolio company of Grant Avenue and is no longer a subsidiary of Quorum Health Corporation (“QHC”). Brentwood Capital Partners, L.P. II (“BCP II”) co-invested alongside Grant Avenue in the transaction. BCP II is a $42.2 million private equity fund affiliated with BCA.
Headquartered in Brentwood, TN, QHR Health is a leading shared service solutions provider for independent hospitals and health systems nationwide. QHR Health was founded in 1977 by HCA Management, was acquired by Triad Hospitals in 2000, then Community Health Systems in 2007. In 2016, QHR Health spun out of Community Health Systems as a part of QHC, a leading operator of general acute care hospitals and outpatient services in the U.S.
“This is an exciting time for QHR Health, our clients and the markets we serve,” said Dwayne Gunter, President and CEO of QHR Health. “Our partnership with Grant Avenue fuels the ability to accelerate development of our technology-enabled shared-services, expand our human capital capabilities, and provide the solutions our clients require to remain independent, financially strong and well-positioned to serve the evolving healthcare needs of their communities.”
“Strengthening independent community healthcare is foundational to a strong, national healthcare infrastructure. The QHR Health team has demonstrated the ability to meaningfully impact and improve the performance of its clients through its broad solution set. We look forward to investing further in QHR Health, both organically and through acquisitions, to expand its breadth of services,” said Buddy Gumina, founder and managing partner at Grant Avenue. “BCA played a critical role in catalyzing this deal and we look forward to working with BCA and BCP II on QHR, and more generally as well, in the future.”
“With its proven healthcare expertise and deep network of industry relationships, Grant Avenue is the ideal partner for QHR Health during this upcoming growth phase,” said Michael Ory, Managing Director at BCA. “It was a pleasure working with Grant Avenue and QHR Health on this transformative transaction, and we are excited to watch the QHR team enhance its shared service offering to independent healthcare organizations.”
About Brentwood Capital Advisors
Headquartered in Franklin, Tennessee, Brentwood Capital Advisors is one of the nation’s leading independent investment banks, specializing in providing financial advice on mergers, acquisitions, corporate divestitures, and capital raising to growth-oriented, middle-market healthcare, technology, and tech-enabled services companies. For more information, visit www.brentwoodcapital.com.
About Grant Avenue Capital LLC
Grant Avenue Capital is a healthcare-focused, middle-market private equity firm targeting investments alongside forward-thinking management teams that seek an experienced and innovative investor with highly flexible capital, both in terms of duration and structure. While a typical investment will involve companies generating approximately $5 million to $25 million of EBITDA, Grant Avenue Capital has significant support to complete larger transactions through strategic co-invest relationships. The firm focuses on control buyouts, buy-and-builds, corporate carve-outs, joint-control partnership investments, and special situations. For more information, visit www.GrantAve.com.
In addition, the Grant Avenue Foundation supports employees and portfolio companies of Grant Avenue Capital that are actively engaged with healthcare-oriented charitable organizations.
About QHR Health
QHR Health is the industry’s leading health solutions provider serving independent, critical access and rural hospitals and health systems across the U.S. For more than 40 years, QHR Health has collaborated with clients to ensure that people in communities ranging from small rural towns to larger population centers, have local access to quality healthcare services.