H.I.G. Capital News
H.I.G. Capital, LLC
H.I.G. Capital, LLC
H.I.G. Capital, LLC Launches New Pharmaceutical Marketing Services Network-HealthSTAR Communications, Inc.
June 19, 2001 - H.I.G. Capital, LLC of Miami, Florida announced today that it has launched HealthSTAR Communications, Inc. by completing an initial round of four acquisitions. The transactions create the 6th largest Pharmaceutical Marketing Services Company and the largest independent agency among the “Top 10” firms in the $15 billion pharmaceutical marketing services industry. H.I.G. Capital provided the equity for the transaction in conjunction with debt and equity funding from CapitalSource Finance, LLC of Washington, DC and Windjammer Capital Investors, LLC of Boston, Massachusetts.
HealthSTAR Communications, Inc. (“HealthSTAR” or “the Company”) is a Pharmaceutical Marketing Services Holding Company with revenues in excess of $120 million. Through its synergistic operating subsidiaries, HealthSTAR provides three types of services: i) advertising agency services, ii) integrated marketing communications solutions, and iii) exclusive “Controlled Media” Venues (e.g. Direct-to-Consumer (DTC) programs, Event Marketing, Customer Relationship Marketing (CRM) and Sponsorship Programs establishing large scale promotional forums that will connect the Pharmaceutical industry to Physicians, Patients, Providers and Payors.
Mr. Sami Mnaymneh, Managing Director of H.I.G. Capital, stated: “H.I.G. has been very successful in creating partnerships with strong management teams to lead industry consolidations and rationalization efforts. We are extremely excited about the HealthSTAR “Vision” and the seasoned management team led by Jerry Brager. We have made a capital commitment of over $200 million to HealthSTAR to provide the resources necessary for HealthSTAR to achieve its goals. Through strong internal growth and strategic add-on acquisitions, we expect HealthSTAR to achieve revenues in excess of $500 million over the next 3 to 5 years.”
Mr. Jerry Brager, HealthSTAR’s Founder, Chairman & CEO, is regarded as one of the more forward thinking executives in the pharmaceutical marketing services and health information industries. Mr. Brager has been in the Pharmaceutical Marketing Services industry since 1970, has formed three other companies, one of which he took public, via Lehman Brothers in 1991. Mr. Brager is joined by an experienced group of professionals including John Corcoran, President and COO. Mr. Corcoran has more than 35 years of experience in the healthcare advertising industry and has managed several of the largest international healthcare advertising networks.
The Company establishes the first National network of regionally based healthcare marketing services companies. Advertising agency services and marketing communication services include strategic and business planning, market research, advertising and promotion materials, public relations and medical education programs. During the next 12 to 24 months, the Company will acquire other products, services and “Venue” companies that will create the broadest catalog of pharmaceutical marketing services offering in the industry enabling it to provide a “One Stop Shop” solution.
Mr. John Black, Managing Director of H.I.G., stated: “A significant factor in our decision to partner with the HealthSTAR team is that the dynamics of the pharmaceutical marketing industry (a $10 billion market) favor larger more diversified marketing firms capable of providing a broader range of marketing services. This is illustrated by the fact that the Top 5 largest Healthcare advertising agencies have experienced tremendous annual growth of more than 30%. We believe that the HealthSTAR management team, one of the strongest in the sector, together with our consolidation experience, will enable HealthSTAR to provide the pharmaceutical industry with the breadth of services it needs to reach all the prescription decision makers (patients, physicians, payors, and providers).”