Welsh Carson doubles money on exit(2)

Welsh, Carson, Anderson & Stowe has sold AmeriPath for $2 billion; it took the cancer and genomics diagnostics company private in 2003 in a transaction valued at $839.4 million.

New York-based private equity firm Welsh, Carson, Anderson & Stowe has sold AmeriPath to Quest Diagnostics in an all-cash, $2 billion (€1.5 billion) transaction. The deal includes approximately $770 million in debt.

Welsh Carson took the cancer and genomics diagnostic company private in 2003 in an $839.4 million transaction.
The sale to Quest is subject to customary closing conditions and regulatory clearance and is expected to be completed during the second quarter of 2007. Quest intends to pay for the transaction – and refinance AmeriPath’s existing debt as well as the debt from another acquisition completed this year – with the proceeds of a $1 billion one-year bridge loan and a five-year $1.5 billion term loan, both to be underwritten by Morgan Stanley, the company said. The bridge loan is expected to be refinanced shortly after the closing, it said.

Ropes & Gray attorneys Othon Prounis, Anthony Norris and Carl Marcellino represented AmeriPath in the acquisition, while Shearman & Sterling represented Quest.

Established in 1979, Welsh Carson has managed more than $16 billion across 14 funds. It is currently investing a $3.5 billion private equity fund, WCAS X, and a $1.3 billion dedicated subordinated debt fund, WCAS Capital Partners IV. The firm focuses on investments in the healthcare and information and business services sectors.