Broadlane - Onex Falcon

Broadlane

Secondary purchase of securities from small equity holders

Business Description:

Broadlane is a leading healthcare group purchasing organization and management services company providing comprehensive supply chain management, technology and other value-added services to hospitals, physicians’ offices and surgery centers. Broadlane’s primary business is to utilize its clients’ combined purchasing power and its own highly-competitive sourcing methods to create a premium portfolio of contracts with superior pricing and terms from suppliers for a wide variety of healthcare products. The value-added services Broadlane provides entrench the company as an integral part of its clients’ supply chain.

Falcon Solution:

Broadlane was majority-owned by a large hospital company that wanted to reduce its ownership stake. The challenge lay in the fact that the parent was also the company’s largest customer and, prior to the transaction, performed significant administrative functions for the company. Falcon arranged and invested in a new capital structure consisting of senior notes, convertible preferred stock and common equity.

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Investment Date:

DEC 2005

Transaction Type:

Secondary Purchase

Industry:

Healthcare services

Sponsor:

Management

Securities:

Common stock

Exit Date:

August 2008