Blackstone's Team Health Files Plans For $100M IPO Dow Jones Newswires 6:39 am October 6, 2009
Team Health Holdings LLC filed plans to sell up to an estimated $100 million of stock through an initial public offering, becoming the latest company to make such a move. Filings have been on a notable upswing the past month as the stock market has been able to hold its gains from March's multiyear lows. That has increased confidence among company owners, notably private-equity firms, to take holdings public. Blackstone Group LP (BX) currently owns 92% of the voting power in Team Health and will be selling stock through the IPO. The company calls itself one of the largest suppliers of outsourced health-care professional staffing and administrative services to hospitals and other health-care providers in the U.S. The 30-year-old company serves nearly 550 hospitals and their affiliated clinics in 46 states with nearly 6,000 physicians, assistants and nurse practitioners. Team Health, which estimated the outsourced health-care-staffing business to be a $50 billion market, had earnings of $41.7 million on revenue of $711.7 million, compared with a prior-year profit of $27.1 million on $665.5 million of revenue.
This is just to pay down some debt. They originally paid about a billion for this company. They own a great deal of health services assets. Vangaurd Health looks pretty big and they also own some retirement homes.
The thing is these guys are still holding $30 billion in dry powder and that can be leveraged into quite a bit more. The only big purchase out there if it happens is the Busch parks. They didn't put up much for Broadgate. That was something like $120 million. They are extremely cash rich right now.