H.I.G. Capital News

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Riok Rosen, Managing Director
H.I.G. Capital, LLC
(305) 379-2322

H.I.G. Capital Makes Strategic Investment in APS Healthcare

January 12, 2004 - H.I.G. Capital, a Miami-based private equity firm, announced today that it has acquired a significant equity stake in APS Healthcare, Inc. (“APS”). Headquartered in Silver Spring, Maryland, APS is a leading provider of behavioral healthcare and disease management services as well as employee assistance programs (EAP). The company offers a wide range of customized mental and substance abuse healthcare services to more than 12 million covered lives in the United States and Puerto Rico. It has a network of over 29,000 healthcare providers that offers mental health services to individuals for its customers, including corporate employers, healthcare insurers, PPOs, HMOs, Medicaid, Medicare, indemnity plans and other public sector programs. APS is also widely known as a leading innovator within the emerging disease management industry for its proprietary development and utilization of predictive modeling to identify, stratify and effectively intervene with high-risk cases, in particular those with co-morbid medical and behavioral issues.

In 2003, APS generated nearly $200 million in revenue from more than 1,000 customers throughout North America. APS Healthcare’s customers include many of the largest and best known employers, health plans and public government programs including Motorola, Mellon Bank, Pfizer Pharmaceuticals, the State of Maryland, Coventry and Puerto Rico Health Insurance Administration.

“We are extremely excited about our new partnership with H.I.G. Capital.” said Dr. Kenneth A. Kessler, APS Healthcare’s Chief Executive Officer and founder. “This investment allows APS to be well-positioned, financially, operationally and competitively, to better serve and expand our customer base. I look forward to the beginning of an exciting new relationship, marked by increased sales, profitability and growth.”

Rick Rosen, Managing Director of H.I.G. Capital, said, "We are very pleased to add APS to our portfolio of strong, entrepreneurial, growth-driven companies. APS Healthcare has an outstanding management team, leading market position and, with this infusion of new capital, the company is well-positioned to take advantage of the strong customer demand for managed behavioral healthcare and disease management services.”

H.I.G. Capital is a leading private equity and venture capital investment firm with more than $1.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco, H.I.G. specializes in providing capital to mid-market companies with attractive growth potential. H.I.G. invests in management-led buyouts or recapitalizations of well established, profitable, and well managed manufacturing or service businesses. H.I.G. generally focuses on middle market transactions where it is able use the operating expertise of its principals to improve the performance of its portfolio companies. Since its founding, H.I.G. Capital has made more than fifty highly successful investments, acquiring companies with combined revenues in excess of $4.0 billion.