CCMP in 5x healthcare exit

The firm has agreed to sell CareMore Health Group to health benefits company WellPoint for $800m, according to a source close to the situation.

 CCMP Capital Advisors has agreed to sell CareMore Health Group to health benefits company WellPoint, generating a 5x return multiple, according to a source close to the situation.

CareMore provides Medicare services to beneficiaries in California, Arizona and Nevada. CCMP acquired the company in 2006 in a transaction valued at $250 million, and is selling CareMore for $800 million, the source said. Under CCMP’s ownership, CareMore’s EBITDA more than doubled, according to a statement.

The transaction is expected to close by the end of September.

Last month, CCMP acquired an 80 percent stake in clinical research organisation Medpace. Financial details were not disclosed, but a source familiar with the transaction told Private Equity International the total value of the deal was approximately $500 million.

CCMP established itself as an independent firm in 2006, and specialises in upper mid-market buyouts and growth equity investments between $100 million and $500 million. The firm's investment professionals continue to manage the private equity portfolio of J.P. Morgan Partners, and have invested over $13 billion in buyout and growth equity since 1984.