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Sep
6

PMSI’s acquisition

Yes, the deal is in process.

PBM PMSI’s new owners will be Kelso & Company and Stone Point Capital. And yes that’s  the same Stone Point that owns Stone River/Progressive Medical.

Emry Sisson and Tommy Young will remain as Co-CEOS, with current PMSI CEO Eileen Auen taking the top spot as Executive Chair.  The new company will have revenues near $750 million.

Given recent transactions, I’d hazard a guess that PMSI’s price was hefty, likely well above a double digit multiple of their EBITDA.

Auen has done a remarkable job turning around an almost-defunct PMSI; her leadership is key to the success of the new company and she will remain with the new organization in a full time role.  Anyone who knows Eileen knows she’s full-time executive, with an excellent reputation in the industry and strong relationships with many payers.

More to come


One thought on “PMSI’s acquisition”

  1. Joe,

    Interesting deal that strengthens Stone Point Capital’s position. Thanks for the post.
    Is this a “first wave” in the private equity driven reform of Worker’s Comp that you referred to in your Aug 23 post?

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Joe Paduda is the principal of Health Strategy Associates

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