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HVHC, Centerbridge Partners Close on Deal Combining Vision Businesses
Wednesday 06 December 2017

6 December 2017 - US-based private equity firm Centerbridge Partners, L.P. and US-based health insurer Highmark Inc.'s HVHC Inc. subsidiary have closed on a multifaceted transaction announced on 9 August, the companies said.

Upon closing, Davis Vision was combined with Superior Vision, Centerbridge's existing managed vision care portfolio company, with Highmark now owning a minority interest in the combined managed vision care business.

In a separate transaction, Centerbridge acquired a minority equity stake in Visionworks, HVHC's optical retail subsidiary.

Highmark continues to retain a controlling ownership interest in Visionworks.

Centerbridge Partners is a private investment management firm. The firm was founded in 2005 and as of November 2017 has approximately USD 28bn in capital under management with offices in New York and London.

Superior Vision is in managed vision care, providing vision and eye health solutions to commercial groups, individuals, health plans and government-sponsored programmes such as Medicaid and Medicare. Headquartered in Baltimore, the company serves more than 11m members nationwide.

Highmark Health is the Pittsburgh based parent company of an enterprise that employs more than 40,000 people nationwide and serves nearly 50m Americans in all 50 states and is the second largest integrated health care delivery and financing network in the nation based on revenue.

Highmark Health is the parent company of Highmark Inc., Allegheny Health Network, and HM Health Solutions.

Highmark and its subsidiaries and affiliates provide health insurance to nearly 5m members in Pennsylvania, West Virginia and Delaware as well as dental insurance, vision care and related health products through a national network of diversified businesses that include United Concordia Companies, HM Insurance Group and Visionworks.

Allegheny Health Network is the parent company of an integrated delivery network that includes eight hospitals, more than 2,800 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions in western Pennsylvania.

HM Health Solutions focuses on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans.

Highmark and its health insurance subsidiaries and affiliates collectively are among the ten largest health insurers in the United States and comprise the fourth-largest Blue Cross and Blue Shield-affiliated organization.

For this transaction, CapM Advisors acted as financial advisor to Highmark. Skadden, Arps, Slate, Meagher and Flom LLP served as legal counsel to Highmark. Barclays and Macquarie Capital acted as financial advisors to Centerbridge.

Goldman Sachs, Bank USA, Barclays, BMO Capital Markets, Macquarie Capital, and Morgan Stanley Senior Funding, Inc. are providing financing for the Davis Vision transaction. Willkie Farr and Gallagher LLP served as legal counsel to Centerbridge. Harris Williams and Co. provided advisory services to Highmark.
Details
Date Published: 06/12/2017
Target: Davis Vision/majority stake
Country: USA
Sector: Healthcare
Type: LBO
Financing:
Status: Closed
Vendor: Highmark/ HVHC
Buyer: Centerbridge Partners
Buyer Advisor: Barclays , Macquarie Capital , Willkie Farr and Gallagher
Comment:
Davis Vision was combined with Superior Vision, Centerbridge´s existing managed vision care portfolio company.

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