Water Street Completes Merger of CHS and Take Care Employer Solutions to Create Leading Worksite Health Company
CHICAGO – June 25, 2014 – Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry, announced today that it has simultaneously invested in and merged CHS Health Services (CHS) and Take Care Employer Solutions, LLC, a subsidiary of Walgreen Co. The combination creates a leading worksite health company dedicated to improving the cost and quality of employee health care.
With more than 85 years of combined experience, the new company will manage nearly 500 worksite health and wellness centers across the country. It will serve more than 200 corporations, including a significant number of the Fortune 1000. Stuart Clark, who has led CHS for the past eight years, has been appointed CEO of the combined company, which will maintain its headquarters in the greater Nashville, Tenn. area.
“This merger brings together two of the most experienced and highest quality providers in the onsite health care industry. CHS and Take Care have been instrumental in establishing worksite health care as a primary tool for employers to effectively manage employee health care. As one company, we offer unparalleled expertise and capabilities that will drive innovation and transform onsite care to play a much larger role in maximizing companies’ return on their health investment,” said Mr. Clark.
Water Street has years of experience and a broad network of relationships in health care services, which it will engage to support the new company with developing and implementing programs and technologies that will expand its offering to employers. Walgreens, as a strategic investor, will support relationships with employers and continue to manage its existing worksite pharmacies in collaboration with the new company.
“We are pleased that Walgreens and CHS selected Water Street as their strategic partner to build this new company,” said Max Mishkin, principal, Water Street. “Our team has a strong track record of partnering with global health care corporations to transform their businesses into successful, independent companies, as well as collaborating with middle-market businesses to accelerate growth. This is a unique opportunity to collaborate with both types of organizations to create a leading provider of employer health care services.”
Water Street’s partnership with CHS and Walgreens is the firm’s eighth investment in the health care services sector. Over the past nine years, Water Street has invested in a range of services companies specializing in benefits outsourcing, diagnostics, and physical therapy and rehabilitation. Water Street currently owns a group of 14 health care companies that are leaders in specialty distribution, medical and diagnostic products, health care services, and pharmaceutical products and services.