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HIG Capital continues deal spree with California Forensic buyout

7 Jan 2013

california-2_sqMiami-based buyout house HIG Capital has made a strategic investment in California Forensic Medical Group (CFMG), a provider of outsourced healthcare services for county jail inmates in California.

Monterey, California-based CFMG was founded in 1983 and has operations throughout the state.

Although financial terms of the deal were not disclosed, the firm typically invests in mid-sized companies with enterprise values of between $50m and $500m, according to its website.

“[The founding management team] are exceptional people and have built a best-in-class company that has differentiated itself by lowering healthcare costs while improving quality, enabling them to establish true partnerships with their county customers,” HIG Capital managing director Rob Wolfson said in a statement released today.

“CFMG and its employees place their customers (inmates and county corrections personnel) first and that focus will continue to be the key to CFMG’s success.”

The CFMG deal follows HIG’s recent recapitalisation of US trailer maker Big Tex, both of which represent two of the last deals through the mid-market firm’s fourth fund.

HIG Capital Partners IV closed in September 2006 with commitments of $750m.

The firm is understood to be marketing its latest fund with a target of $1bn.

The provision of healthcare services to correctional facilities has been a popular target for US mid-market private equity firms in recent months.

At the end of 2012 Chicago-based GTCR completed its acquisition of Correctional Healthcare Companies, a provider of outsourced inmate healthcare services to jails and prisons in the US.

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