Prospect Medical Holdings, a Los Angeles-based managed care provider, which operates five hospitals, has agreed to be acquired by Leonard Green & Partners, a private equity firm and members of the company's own management team for $205 million, according to a Los Angeles Business Journal report.
Prospect Medical would be Leonard Green & Partners' first hospital operator in its portfolio. Within the healthcare sector, the firm has ownership stakes in Equinox fitness clubs and IMS Heath, which provides data and consulting services to pharmaceutical companies. The private equity firm is best known, however, for its investments outside the industry, in companies that include Whole Foods and The Container Store.
As part of the agreement, Prospect Medical may seek competing proposals from other entities interested in acquiring the company for 40 days ending Sept. 21.
Read the Los Angeles Business Journal report on Prospect Medical Holdings.
Read more coverage on private equity investment in hospitals:
- 6 Most Compelling Factors for Private Equity Investors
- Private Equity Firm to Acquire Boston's Caritas Christi Health Care
Prospect Medical would be Leonard Green & Partners' first hospital operator in its portfolio. Within the healthcare sector, the firm has ownership stakes in Equinox fitness clubs and IMS Heath, which provides data and consulting services to pharmaceutical companies. The private equity firm is best known, however, for its investments outside the industry, in companies that include Whole Foods and The Container Store.
As part of the agreement, Prospect Medical may seek competing proposals from other entities interested in acquiring the company for 40 days ending Sept. 21.
Read the Los Angeles Business Journal report on Prospect Medical Holdings.
Read more coverage on private equity investment in hospitals:
- 6 Most Compelling Factors for Private Equity Investors
- Private Equity Firm to Acquire Boston's Caritas Christi Health Care