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FOR IMMEDIATE RELEASE
Contact Information:
Christopher G. Hanssens
Managing Partner
(267) 238-4218
Eureka Sells Specialty Pharma to Critical Homecare Solutions and Closes Second Fund II Acquisition
Philadelphia, PA,
September 29, 2006 -
Eureka Growth Capital (“Eureka”) today announced the sale of its portfolio company, Specialty Pharma, Inc. (“SPI”), to Critical Homecare Solutions, Inc. (“CHS”), a wholly-owned subsidiary of KCHS Holdings, which is an affiliate of Kohlberg & Company, L.L.C. Financial terms of the transaction were not disclosed. Eureka acquired a majority interest in SPI, formed with industry veterans Joseph Fleming and David Pliner, to facilitate the September 2003 management buyout of Professional Home Care Services, Inc. (“PHCS”).
SPI, through its operating subsidiary PHCS, is a regional provider of home infusion and respiratory therapy services. Based in Cromwell, CT, SPI also distributes infused and injected biotechnology drug therapies in patient home and physician office settings.
“It’s been a pleasure to work with the talented management team at SPI to help the company expand its therapies and geographic coverage and build the infrastructure to solidify its platform for continued growth,” said Tom Calibeo, Partner with Eureka and former member of SPI’s Board of Directors. “The acquisition by Kohlberg will provide company president Lou Calamari and his team the opportunity to leverage the SPI platform and increase acquisition activity to bring SPI’s high service level to a larger patient population.”
Eureka today also announced that it partnered with senior management of Cherry Hill Photo Enterprises, Inc. (“CHP”) to recapitalize CHP, the leading outsource service provider of special event digital photography services to many of the most prominent mall developers in North America. Eureka acquired a majority interest in CHP with significant equity investment coming from senior management. The transaction closed on August 31, 2006 and represents Eureka’s second investment from its current fund, Eureka II, L.P.
“Cherry Hill’s long-tenured management team has an impressive record of consistently growing the business while bringing increased value and innovation to their customers,” said Chris Hanssens, Partner with Eureka. “We look forward to working with Cherry Hill’s management team on new initiatives to continue that record of growth and leadership in the industry.”
“The management team of Cherry Hill is very excited to partner with Eureka Growth Capital,” said Ed Warchol, President of CHP. “Eureka’s support gives us a tremendous platform to pursue growth opportunities including new product introductions and geographic expansion beyond North America that will significantly grow the company, enhance profitability and make Cherry Hill an even more valuable partner to our mall developer customers.”
MCG Capital Corporation (Nasdaq: MCGC) of Arlington, Virginia provided the debt facilities to finance the acquisition and co-invested in the equity.
About Eureka Growth Capital
Eureka Growth Capital is a private equity firm providing capital and trusted counsel in partnership with proven managers to drive the growth of promising companies into outstanding enterprises. Eureka is committed to supporting exceptional management teams of businesses with $10 million to $75 million in revenue. Eureka leads buyouts that bring significant ownership to the managers driving the success of the business as well as minority recapitalizations with flexible investment structures designed to uniquely meet the needs of the company, its management team and other shareholders. More information about Eureka Growth Capital can be found at www.eurekagrowth.com.
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3420 BELL ATLANTIC TOWER, 1717 ARCH STREET,
PHILADELPHIA, PA 19103
PHONE (267) 238-4200 FAX (267) 238-4201
WWW.EUREKAGROWTH.COM
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