HEALTHPLAN HOLDINGS COMPLETES SALE OF MONTGOMERY MANAGEMENT TO COMPANION LIFE INSURANCE CO.
TAMPA, FL - November 9, 2007- HealthPlan Holdings, Inc. (“HealthPlan”) today announced that it has completed the sale of its subsidiary, Montgomery Management Corporation (“MMC”) to Companion Life Insurance Co., which specializes in Group Insurance and Voluntary Group Insurance products for Employer Groups.
Companion Life is a wholly owned subsidiary of BlueCross BlueShield of South Carolina. HealthPlan is an affiliated portfolio company of Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies. Terms of the sale were not disclosed.
MMC, located in Blue Bell, Pennsylvania, is a managing general underwriter that underwrites stop-loss insurance for self-funded employer health plans. The Company, founded in 1971 has full authority for underwriting, policy binding, contract issue, premium collection, and claims payment. It distributes its contracts primarily through third-party administrators, insurance brokers, and employee consultants. MMC, which was acquired as part of HealthPlan’s formation in 2001, has 18 associates.
Jeff Bak, President and CEO of HealthPlan Holdings, said "This is an ideal transaction for both HealthPlan and Companion. HealthPlan was able to sell a non-core asset to a valued business partner that viewed MMC and its market niche as a key strategic asset for growing their business. We wish Companion Life every success in growing Montgomery Management that we have built in the last six years."
About HealthPlan Holdings
HealthPlan Holdings, a Sun Capital Partners, Inc. affiliate, is the largest privately held outsourcing solutions company for fully insured employee benefit services for insurance companies and managed care organizations that serve this market. Since 1970, HealthPlan has offered customized administration and distribution services to insurers in the individual, small business, association and voluntary-worksite niche, and services thousands of brokers and agents who sell into this market. For more information about HealthPlan Holdings, please visit www.healthplanholdings.com.
About Companion Life Insurance Company
Headquartered in Columbia, S.C., Companion Life Insurance Co. (www.CompanionLife.com) has specialized in employee benefits since 1971. The company markets life, dental, disability, accident and specialty health insurance products through a network of independent agents and brokers, general agents and managing general underwriters.
Companion Life markets its products in 45 states and the District of Columbia. The company holds an A+ (Superior) rating from A.M. Best Company.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 170 companies worldwide with combined sales in excess of $35.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Tokyo, and Shenzhen. For more information, please visit www:SunCapPart.com.
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