January 8, 2016 – AMN Healthcare Services, a provider of healthcare workforce solutions and staffing services, has completed its acquisition of healthcare-focused executive search firm B.E. Smith for $160 million in cash.
The transaction is immediately accretive to AMN’s earnings and is structured to allow AMN to realize tax benefits having an estimated net present value of approximately $25 million. The purchase price is being funded through a combination of term loan borrowings and revolver draws under the company’s credit facility.
Over the last few years, acquisitions have been a key growth driver for AMN Healthcare. Early last year, the company took over nurse and allied healthcare staffing firm Onward Healthcare (OH). In September, AMN Healthcare acquired Irvine, CA-based The First String Healthcare, a leading provider of nursing staff. And in October, AMN Healthcare took over Millican Solutions, a physician executive search firm focused on serving academic medical centers and children’s hospitals. That acquisition included cash payments totaling $4 million.
“The recruitment expertise and national talent pool of healthcare leaders provided by B.E. Smith brings immediate strategic value to AMN Healthcare’s broad portfolio of innovative workforce solutions,” said Susan Salka, president and CEO of AMN Healthcare. “Client reaction to our recent announcement has been very positive, particularly as healthcare organizations are faced with the need for key executive and leadership talent to drive transformation across the care continuum.”
Doug Smith, president and CEO of B.E. Smith, said: “The two companies share a common passion and dedication for delivering differentiated value to the healthcare industry. Talent is of critical importance to healthcare, and we are excited to join AMN Healthcare’s prestigious recruitment and workforce solutions brands. Together, we will create even greater value for our clients during this transformational time.”
Founded in 1978, B.E. Smith is a full-service healthcare interim leadership placement and executive search firm. For nearly a decade, it has been recognized annually by Modern Healthcare as one of the top search firms in its sector. The firm places interim leaders and executives across all healthcare settings, including acute care hospitals, academic medical and children’s hospitals, physician practices, and post-acute care providers. It is currently generating annualized revenue of approximately $100 million with an adjusted EBITDA margin of 15 percent.
There’s been a host M&A activity in the executive recruiting field in recent months, including Options Group acquiring Whitney Correlate’s business, Heidrick & Struggles acquiring Co Company and Korn Ferry purchasing Hay Group.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media