Air Medical Group Holdings, Inc.
To drive outsized returns, we believe a private equity firm needs to provide more than just capital resources – the firm needs to work actively with management to transform the platform company into a company that, at the time of sale, is larger, more diversified and has a strengthened management team that will continue to seize opportunities to grow.
Brockway Moran & Partners partnered with another private equity firm to execute upon the transformational opportunity in Air Evac Lifeteam (subsequently renamed Air Medical Group Holdings). At the time of our acquisition, Air Evac was a leading community-based helicopter medical transportation provider with a growing membership program, serving a nine-state area across the central United States. Since its founding in 1985 by four local citizens in the rural community of West Plains, Missouri, Air Evac, under the leadership of industry legend Colin Collins, grew from a single helicopter to 37 base locations – significant growth for sure, but still a regional player and entrepreneurially run business.
Over our six-year ownership period, Air Medical Group transitioned into a national leader of air medical services in the United States with 147 base locations across 25 states while establishing the industry’s largest membership program with over 875,000 members. Air Medical accomplished this leadership position by focusing on both internal and external initiatives. Internally, we deepened the management team, opened 49 greenfield locations, achieved strong same base revenue growth and more than doubled the membership program. Externally, Air Medical Group added 61 bases through 13 add-on acquisition and hospital conversion transactions. This expansion significantly broadened its geographic footprint as well as the company’s service offering to include additional delivery models and expand the aircraft model types to serve previously unaddressable market segments and geographies.
After nearly quadrupling the number of bases, more than doubling the size of its membership program and increasing the earnings of the company 10 times – achieving metrics that by any measure would be viewed as exceptional – Air Medical Group was sold to a leading private equity firm, Bain Capital, including an ongoing significant minority investment from Brockway Moran & Partners. Approximately five and a half years later, Air Medical was sold to industry icon KKR, after more than doubling the size of the company over that time period through numerous growth initiatives. And the same CEO, Fred Buttrell, who was recruited by Brockway Moran & Partners over a decade ago is leading the company today, ready for another flight plan of growth and expansion.Print