Bain Capital’s Air Medical Group to bolt on Reach Medical


Bain Capital-backed air ambulance service Air Medical Group (AMG) has reportedly agreed to buy fellow air medical service Reach Medical Holdings.

Dow Jones reported the news, citing credit ratings agency Moody’s, which said AMG expects to take on $250m in debt to help complete the deal.

Moody’s expects the deal to increase Air Medical’s debt to EBITDA ratio to between six times and 6.3 times, up from 5.8 times currently.

The ratings agency also expects the ratio will fall below six times debt to EBITDA in the next 12 to 18 months on the back of anticipated continued earnings growth.

Bain bought AMG for almost $1bn in 2010 from Florida-based private equity firm Brockway Moran & Partners and Pennsylvania’s MVP Capital, which had bought the business six years earlier.

The company operates three subsidiaries that work with hospitals and emergency services to provide medical care.

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