OMERS Private Equity has acquired a controlling stake in Premise Health Inc. from Water Street Healthcare Partners. Premise’s executive team led by CEO Stu Clark will continue to lead the company. Financial terms of the transaction were not disclosed.
Premise Health was formed in 2014 when Water Street merged Walgreens’ subsidiary, Take Care Employer Solutions, with CHS Health Services. Walgreens remained as a strategic investor. Water Street Healthcare Partners has since made two add-on acquisitions.
photo credit: Premise Health
News Release
Premise Health Announces OMERS As New Lead Investor, And Partner For The Future
BRENTWOOD, Tenn., June 28, 2018 /PRNewswire/ — Direct health care company Premise Health today announced global investment firm OMERS will become its new lead investor beginning in mid-July, following four years of partnership with Water Street Healthcare Partners. OMERS Private Equity is the private equity investment arm of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada.
For Premise Health, which partners with organizations to address the health needs of their employee and dependent populations, this announcement marks the next step forward as it grows to meet demand for greater health care access, according to Premise CEO Stu Clark.
“Over the last four years, we have significantly expanded and evolved our model to deliver unrivaled access to high-quality care, offering a seamless member experience and exceptional value,” Clark said. “Now, we are poised to continue that progress with support and capital from a global partner known for its long-term investment approach, which aligns perfectly with our vision and commitment to our clients, members and their families.”
Water Street and Premise worked together closely to select OMERS as the company’s new investment partner, and Premise’s executive team will continue to lead the company, Clark added.
Ned Villers, partner, Water Street, commented, “When we partnered with Walgreens and the management team to create Premise Health, our vision was to transform Premise into the national leader in employer health care. We are proud of the tremendous value that Premise Health brings to the health care system today and believe that the company is ideally positioned to continue its strong growth in the future.”
OMERS is one of Canada’s largest defined benefit pension plans, with more than $95 billion in net assets, as of December 31, 2017. Other examples of OMERS Private Equity’s healthcare investments include dermatology provider Forefront Dermatology, dental services provider Great Expressions, outpatient physical therapy and home health provider CBI Health Group, and outpatient rehabilitation services provider Accelerated Rehabilitation Centers.
“Our approach to investment is a patient one, with a focus on growing businesses by providing long-term capital and supporting management,” said Tim Patterson, OMERS managing director. “We’re pleased to partner with Premise Health to pioneer new solutions to enhance health care experiences, while lowering the overall cost.”
Rising health care costs remain a challenge for many organizations. Average annual employer contributions to premiums for family coverage increased 48 percent between 2007 and 2017, from $8,824 to $13,049 per family, according to the Kaiser Family Foundation 2017 Employer Health Benefits Report.
Patterson added that together, Premise and OMERS have “a tremendous opportunity to offer organizations a different approach to health care and make a difference for millions of people.”
Harris Williams & Co. acted as the merger and acquisition advisor to Premise Health for this transaction.
ABOUT PREMISE HEALTH
Premise Health is the leading direct healthcare company pioneering new models to deliver powerfully effortless healthcare. With more than 50 years of experience, Premise Health delivers unmatched quality, access and value through more than 600 health and wellness centers in 44 states, Guam and Puerto Rico. The company serves more than 275 of the nation’s most innovative organizations, including a significant number of Fortune 1000 companies.
Premise Health believes that the future of healthcare is unrivaled access to phenomenal care that costs less for clients, members and their dependents. It delivers that future today through three access points – onsite health, nearsite health, and 24/7 virtual health. It also serves as the healthcare gateway for members and dependents, connecting them not only to its own robust and comprehensive provider network but also to the broader healthcare ecosystem. The result is a member experience that makes it easy to be seen anytime and anywhere.
For more information on Premise Health, visit www.premisehealth.com.
ABOUT OMERS AND OMERS PRIVATE EQUITY
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with more than $95 billion in net assets, as at December 31, 2017. OMERS invests and administers pensions for more than 482,000 members through originating and managing a diversified portfolio of investments in public markets, private equity, infrastructure and real estate.
OMERS had $10.8 billion of capital invested in private equity assets as at December 31, 2017. OMERS Private Equity, the private equity investment arm of OMERS with a team of investment professionals in Toronto, London, New York, and Singapore seeks to use its significant and differentiated capital base to partner with management teams of industry leading businesses. For more information, please visit www.omersprivatemarkets.com
SOURCE Premise Health