News
Charterhouse and Healthcare Executives Establish Upstream Rehabilitation and Announce Investment in Physical
Rehabilitation Network
New York, April 8, 2004
Charterhouse Group, a New York-based private equity firm that has been actively investing in businesses and backing entrepreneurs since 1973, today announced that it has partnered with two experienced healthcare industry managers and established Upstream Rehabilitation, Inc. ("Upstream") as a platform company to conduct a build-up in the outpatient rehabilitation services industry. Simultaneously, Upstream announced its first investment, a recapitalization of Carlsbad, California-based Physical Rehabilitation Network ("PRN"). PRN is the largest owner and operator of outpatient rehabilitation clinics in the state of California. The Upstream investment into PRN will provide PRN's founder/managers with access to outside expertise as well as expansion capital that will allow for the rapid growth of a highly successful business model.
Upstream's management team includes industry veterans Paul Zimmermann and David Van Name, who collectively have over 35 years of healthcare services experience, mainly in the outpatient rehabilitation market. During their respective tenures at Eagle Rehab, Caremark Orthopedic Services and Baxter International, these individuals were actively involved in acquiring rehabilitation service providers, building de novo centers and managing joint ventured facilities. Charterhouse was initially introduced to Zimmermann and Van Name through relationships in the healthcare services market and the firm has been working closely with the team to refine the business plan and to ensure that Upstream is properly capitalized to achieve its strategic goals.
The new investment is consistent with Charterhouse's strategy of partnering with high quality senior management teams in specific industry sectors. PRN, which was founded in 1992 by Tim Varley, has developed into a rehabilitation services industry leader by remaining focused on providing quality care in a cost effective manner. PRN currently has over 90 outpatient facilities within the states of California and Colorado. It is PRN's objective, under the continuing leadership of Varley and President Jim Ripp, to serve as the platform model, enabling a business expansion into new geographic regions, as well as further growth within the existing markets. Upstream and PRN expect to pursue both organic growth and external acquisition opportunities.
Taylor Cole, Charterhouse Partner, said, "The formation of Upstream Rehabilitation is consistent with our strategy of identifying and backing talented executives and investing in high quality platform entities which operate in attractive markets with substantial consolidation opportunities. With PRN as the platform and our well-positioned growth objectives and acquisition activities, we expect the Company to exceed the $100 million revenue mark in the near future."
Upstream CEO Paul Zimmermann stated, "The attractive market dynamics and existing robust acquisition pipeline will enable Upstream to build a national rehabilitation services presence in the near future."
Tim Varley, founder and Executive Vice President of PRN, echoed Zimmermann's comments and stated, "We are looking forward to our new partnership with Upstream and Charterhouse and working together to continue building our company with intelligence and integrity. Both Charterhouse and Upstream management's financial and operational experience will be instrumental in the acceleration of our growth."
The Aethena Group, a Chicago-based investment firm specializing in healthcare led by David Loucks, Managing Partner, and Vernon Loucks, former Chairman of Baxter International, joined Charterhouse and management in the investment.
About Charterhouse Group
Charterhouse Group, Inc. is a private equity firm with three decades of experience in building leading middle-market companies. Established in 1973, Charterhouse currently manages in excess of $1.4 billion in equity through several limited partnerships. Since its inception, Charterhouse has completed investments in over 80 platform companies with a focus in the business services, healthcare services, consumer products and industrial sectors. For more information, please visit www.charterhousegroup.com.
Additional information on PRN is available at www.prnpt.com. Additional information on Upstream is available at www.upstreamrehabilitation.com.Additional information on The Aethena Group is available at www.aethena.com.
Contacts:
Charterhouse Group:
David G. Hoffman, Partner - (212) 584-3234
C. Taylor Cole, Jr., Partner - (212) 584-3212
Upstream Rehabilitation:
Paul Zimmermann, CEO - (480) 657-3842
David Van Name, COO - (661) 254-4260
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