CVC Capital Partners ("CVC") announced today that CVC Fund VII has signed a definitive agreement to acquire a majority interest in MedRisk ("MedRisk" or "the Company"). MedRisk is a leading provider of managed physical medicine services for the workers' compensation industry in the U.S. The Carlyle Group, MedRisk's current majority owner, will retain a significant stake and maintain joint control in partnership with CVC. The MedRisk team, including founder Shelley Boyce, Executive Chairman Mike Ryan and CEO Ken Martino, will reinvest in the Company.
Founded in 1994 and headquartered in King of Prussia, Pennsylvania, MedRisk consistently delivers clinically superior patient outcomes via the coordination and active management of physical medicine services for workers' compensation patients. Today, the Company manages physical therapy, occupational therapy, and chiropractic treatments for more than 500,000 injured workers annually through a nationwide network across 49 states and Washington, D.C.
"MedRisk has an excellent reputation and a proven ability to improve access to high-quality care, which has enabled the Company to become the industry leader in managed physical therapy for injured workers," said Fazle Husain, Partner at CVC Capital Partners. "We look forward to working closely with the talented team at MedRisk and our friends at Carlyle to continue the compelling growth trajectory of the Company while ensuring that patients continue to receive the highest quality service."
MedRisk is well positioned for the next chapter of its growth due to the unrivalled level of care it delivers to injured workers, and ability to deliver best-in-class service to all stakeholders across the healthcare ecosystem, including patients, employers, physicians, case managers, insurance carriers, third party administrators and network providers.
MedRisk Executive Chairman Mike Ryan said, "Partnering with CVC, given their extensive network and significant financial resources, will fuel our next stage of growth. They have a deep understanding of the healthcare sector and a strong record of helping to build market-leading companies, while maintaining the highest levels of quality."
"We're excited to welcome CVC as a new partner that is well aligned with our mission and vision for the Company. This partnership, along with the continued support of Carlyle, enables MedRisk to strengthen our commitment to existing customers while pursuing greater scale in our operations," added CEO Ken Martino.
"We are incredibly proud of MedRisk's growth journey over the past three years of our partnership and its exceptional management team in building an innovative company with a customer-centric and service-oriented focus," added William McMullan, Partner at Carlyle. "With significant business momentum and strong industry tailwinds in the physical medicine market, we have great confidence in the company's continued success. We look forward to working closely with CVC and the management team to support this industry-leading franchise in its next chapter of growth."
The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions and receipt of required regulatory approvals. Centerview Partners and Truist Securities acted as financial advisors to MedRisk and Carlyle and Debevoise & Plimpton LLP as their legal advisor. White & Case LLP acted as legal advisor for CVC Capital Partners. Equity capital for the investment will come from CVC Fund VII and Carlyle Partners VI.