The private investment firm Flacks Group has acquired a Brentwood company that provides health care and pharmacy services for jails and prisons.
Flacks Group, which is based in Miami, didn’t disclose the price of the acquisition.
Corizon is one of the largest privately owned prison health care companies, providing primary care, behavioral health care, dental care and pharmacy services for state, city and county governments. The company has hundreds of locations, generates about $800 million in annual revenue and has about 5,000 employees.
Flacks calls itself a special situations investor, specializing in acquiring struggling companies or divisions and turning them around. The company’s portfolio of businesses and real estate is worth more than $2.5 billion.
“With this investment in Corizon, we at Flacks Group have demonstrated our ability to respond quickly and make major investments in companies that have strong prospects but face complex operating environments,” Flacks Managing Partner Michel Rybkin said. “We believe in the Corizon Health mission and support management’s plans for excellent service and profitable growth.”
Earlier this year, the financial news company Mergermarket reported that Flacks Group was looking to invest in companies that have been financially stressed by the coronavirus pandemic in the hopes of finding a bargain.
A spokesperson for Corizon said the recent transaction was unrelated to the pandemic, and that the virus outbreak hasn’t had a material financial impact on the company. The timing was instead driven by the company’s maturing debt.
About three years ago the hedge fund BlueMountain Capital Management purchased a large stake in Corizon. The deal significantly reducing the company’s debt, which had reached about $300 million. In November 2018, BlueMountain injected another $100 million into Corizon, reducing the debt load below $90 million.
Flacks is now the sole investor in Corizon. The firm didn’t disclose terms of the deal, but a Corizon spokesperson said it did materially lower the company’s debt.