TowerBrook expands healthcare portfolio

The middle-market buyout firm has acquired Broadlane, a provider of medical equipment and labor contracting services to the healthcare industry.

TowerBrook Capital Partners has agreed to acquire a majority interest in Broadlane, a provider of cost-saving workforce management tools and other services to the healthcare industry.

Current Broadline chairman and chief executive Charles Saunders will step down upon completion of the deal, expected to close by the third quarter of this year. Broadline founder and chief operating officer David Ricker will assume control of the Dallas-based company.

Financing of the deal was provided by Jefferies Finance, but no financial details were disclosed.

Broadlane offers a host of services to acute care hospitals, ambulatory care facilities, and physical practices aimed at cutting down supply-side and labor costs by utilising Broadlane technology. The company provides national and custom contracting for purchasing hospital supplies, benchmarking services for client spending and an online workforce exchange linking healthcare providers with available nurses and clinical staff.

Broadlane’s clientele includes Kaiser Permanente, Advocate Health Group and St. Luke’s Episcopal Health System.

TowerBrook, which has offices in New York and London, currently owns majority stakes in several healthcare related portfolio companies, including Sound Inpatient Physicians, a provider of inpatient physician services, and WellCare Health Plans, which provides managed care services exclusively to government-sponsored health insurance plans.  

Lead by co-chiefs Ramez Sousou and Neal Moskowski, TowerBrook manages roughly $3.5 billion in assets.