
A pattern of acquisitions
SCOTTSDALE, AZ–(Marketwire – 06/30/11) – Rural/Metro Corporation (NASDAQ:RURL – News), a leading national provider of ambulance and private fire protection services, today announced the completion of its acquisition by affiliates of the global private equity firm Warburg Pincus, LLC.
Pursuant to the terms of the previously announced Agreement and Plan of Merger dated March 28, 2011, the Company's stockholders will receive $17.25 per share in cash, without interest, less any applicable withholding taxes, for each share of Rural/Metro common stock owned.
Michael DiMino, President and Chief Executive Officer, said, "We are delighted to join the Warburg Pincus family of portfolio companies and to recognize the value that our stockholders have realized through this transaction."
"We extend our thanks to our Board of Directors, our stockholders, and the 8,000 Rural/Metro employees throughout the nation who are committed to our success as the industry leader for ambulance and private fire protection services," Mr. DiMino added. "We look forward to partnering with Warburg Pincus to implement the strategies that will support our growth for the future."
Sean Carney, a Warburg Pincus Managing Director, said, "Rural/Metro is an expert operator in a healthcare services industry that has tremendous growth potential. We believe the enterprise and its experienced leadership team have what it takes to execute on its organic and strategic growth plans, to leverage the strength of its national platform for the benefit of the communities it serves, and to deliver world-class care and protection to its patients and customers."
Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 450 communities throughout the United States. For more information, visit the Company's web site at www.ruralmetro.com.
Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 125 companies is highly diversified by stage, sector, and geography.
Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value.
Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 650 companies in more than 30 countries. Since inception, the firm has invested approximately $7.5 billion in healthcare companies, including investments in American Medical Systems (NASDAQ:AMMD – News), Bausch & Lomb, Coventry Health Care (NYSE:CVH – News), Euromedic International (acquired by Merrill Lynch Global Private Equity and Ares Life Sciences in 2008), Harbin Pharmaceuticals (SHA: 600664), InterMune (NASDAQ:ITMN – News), Lepu Medical Technology (SHE: 300003), RegionalCare Hospital Partners, ReSearch Pharmaceutical Services and Tornier (NASDAQ:TRNX – News).
The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, Sao Paulo and Shanghai.
For more information, please visit www.warburgpincus.com
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Louis A. Witzeman Jr. was the founder of Rural Metro in Scottsdale, Arizona. He died in 2004 at the age of 79.
From "National Private EMS Archives" on Facebook
Rural was founded more than 60 years ago by Lou Witzeman (a newspaper reporter) to provide fire protection in his neighborhood on a subscription basis.
In 1948 Lou watched as his neighbor's home in an unincorporated area near Phoenix, AZ burned to the ground because there was no fire protection in his community.
Remembering the efforts of Benjamin Franklin to organize fire protection over 200 years ago, Lou secured pledges from households in the community to pay $10.00/year and began a small 4-man department with one truck.
By 1951 Rural had grown to 3 stations and several vehicles, and had signed their first municipal fire service contract with Scottsdale, AZ.
In 1969, Rural began providing ambulance service separate from fire operations covering several hundred square miles in Arizona. (Primarily in Maricopa, Pima, and Yuma counties – Including the cities of Tuscon and Yuma). Shortly thereafter Rural Metro expanded to West Knoxville, Tennessee.
Since the company was now providing Fire/EMS to both rural and metropolitan areas, in 1972 the company changed it's name to "Rural Metro".
In 1978 Rural Metro became an employee owned company, and in 1993 Rural Metro became a publicly traded organization with the employees maintaining majority ownership.
In 1987 Rural Metro purchased Arizona Medical Transport (AMT) becoming the largest ambulance provider in Arizona.
By 1995 Rural Metro was the 4th largest US ambulance provider, and from 1996 to 1998 Rural Metro made nearly 50 more acquisitions.
Rural Metro and American Medical Response are the 2 remaining survivors of the "Big 5' Consolidators.
Game Changer?
Teresa McCallion, writing for EMS Insider, thinks this is a game-changer for ems.
Changing Hands: Is the move to private equity firms a bad thing for U.S. ambulance companies?
Mark Bruning, president of American Medical Response Inc., believes this is an extraordinary time that provides a distinct opportunity for EMS to redefine itself.
“Our practice of medicine in the out-of-hospital environment is going to evolve,” he said. “EMS is uniquely positioned to solve some of the healthcare challenges our country faces.”
At the same time, he said, EMS must continue to provide value in a cost-effective way.
Read the rest of McCallion's article HERE.
Mike "FossilMedic" Ward
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