Two private equity firms buy Utah's CHG Healthcare
CHG Health Services has been acquired by two private equity firms, although existing management of the Salt Lake City-based health care staffing services provider is keeping a significant stake in the company.
Ares Management LLC and Leonard Green and Partners, both based in Los Angeles, purchased control of CHG from Boston-based private equity firm J.W. Childs Associates late last month, Leslie Snavely, CHG vice president of marketing, said Wednesday. She declined further comment.
Terms weren't disclosed, but Matthew Peterson, vice president of the Utah Fund of Funds, which helped to bring Ares and CHG together, said Ares paid "hundreds of millions of dollars" for its stake.
Utah Fund of Funds said the Ares investment will support 820 jobs in Utah. CHG also employs close to 600 people in six other U.S. offices.
Founded in 1979, CHG helps hospitals and health care organizations hire physicians, nurses and other health care professionals.
Ares has $54 billion of investor capital under management. Leonard Green manages $15 billion.
"We are delighted to join Leonard Green in supporting CHG's talented leadership team as long-term investors in the company," Bennett Rosenthal, senior partner at Ares, said.
J.W. Childs owned CHG for six years.