Nashville-based Correct Care Solutions has struck a deal to buy a publicly traded prison health services provider for $59 million.
Correct Care officials say they expect to wrap up their acquisition of Conmed Healthcare Management later this quarter and leave in place that entity’s Maryland-based leadership team. Combined, the companies will serve 100,000 inmates in 25 states and have a payroll of about 5,000. About two-thirds of those numbers come from Correct Care, which has grown about 50 percent since being recapitalized in mid-2010.
“This is a significant milestone for CCS and Conmed,” said Jerry Boyle, president and CEO of Correct Care. “Not only do we bring together two complementary businesses to better serve existing and new clients, we unite two very similar philosophies on providing care to patients and providing excellent customer service.”
Following a failed sale attempt last year, Conmed’s board in February put the company back in the shop window by hiring investment bank Cantor Fitzgerald. Conmed in 2011 posted a profit of $2.5 million on sales of $69 million. Based on the ratio of inmates being brought to the table by each entity, the companies likely have annual revenues around $200 million.
National law firm Ropes & Gray is advising Correct Care in its negotiations.