CHG Healthcare for sale, could bring in more than $1 billion: sources

NEW YORK Tue Sep 11, 2012 4:13am IST

Stocks

   

NEW YORK (Reuters) - Hospital staffing company CHG Healthcare Services Inc has hired Goldman Sachs Group (GS.N) to advise on a potential sale that could fetch more than $1 billion, according to two people familiar with the matter.

A sale would come more than five years after CHG Healthcare was acquired by Boston-based private equity firm J.W. Childs Associates and CHG Chief Executive Mike Weinholtz for an undisclosed sum.

Salt Lake City, Utah-based CHG provides hospitals and healthcare organizations across the United States with temporary or permanent staffing of physicians, nurses and other health professionals.

CHG has around $100 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and owners hope to get 11 times EBITDA in a sale, according to the people familiar with the matter.

The auction, which is in the second round, has attracted interest mostly from private equity firms, the people said.

The sources asked not to be named because the matter is not public. Representatives of CHG and Goldman did not immediately respond to requests for comment.

Founded in 1979, CHG Healthcare is one of the country's oldest and largest healthcare staffing firms, and operates through brands such as CompHealth, Weatherby Healthcare, RN Network and Foundation Medical Staffing.

The company was the first to introduce the concept of temporary or traveling physicians in the United States as a way to help doctors practicing in rural areas take breaks away from their country offices, according to its website.

The so-called traveling physicians provide healthcare facilities with a cost-effective option for filling staffing gaps, allowing them to offer patient care without having to hire additional full-time employees.

(Reporting by Greg Roumeliotis and Soyoung Kim in New York; editing by Carol Bishopric)

Fighting Ebola

REUTERS SHOWCASE

SpiceJet Bail-Out

SpiceJet Bail-Out

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Ten Years On

Ten Years On

British tsunami brothers use funky footwear to help children.  Full Article 

Fund Raising

Fund Raising

Xiaomi raising over $1 bln from investors including GIC - source.  Full Article 

Porn Crackdown

Porn Crackdown

China arrests thousands in porn, gambling crackdown - Xinhua.  Full Article 

India v Australia

India v Australia

Boxing Day test of India's resolve in Melbourne.  Full Article | Related Story 

Jaycee Charged

Jaycee Charged

China charges Jackie Chan's son over drug offence.  Full Article 

China on Cyberattacks

China on Cyberattacks

China condemns cyberattacks, but does not mention North Korea.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device   Full Coverage