River Cities announced today that its portfolio company Horizon Resource Group (HRG) has been acquired by Provista, a leading supply chain improvement company and subsidiary of Novation, one of the largest healthcare GPOs (group purchasing organizations) in the country. Brentwood, Tennessee-based HRG is a national GPO and strategic sourcing partner dedicated to government institutions.
The agreement combines the best-in-class procurement process of HRG and Provista's value from approximately $43 billion in annual purchasing volume. This combination will bring value and choice to public agencies across the United States.
"River Cities has been a great partner to Horizon. They deal with management in a way that is atypical to most venture firms in that they are an extension of the team and do not create an operational burden for management. They took it upon themselves to understand our business and have been a great sounding board for the company to present different strategies. We are very fortunate to have River Cities as a partner," says Todd Abner, HRG's CEO.
"One of the hallmarks of the River Cities model is the sponsorship of world-class management teams who represent absolute domain experts in their market space. Todd Abner and Ward Brown cut their teeth in the healthcare GPO world and applied that expertise brilliantly, pioneering a cooperative group purchasing model in the government sector," says Carter McNabb, River Cities' managing director and member of the HRG Board of Directors.
By leveraging a highly scalable and capital efficient business model, HRG achieved a high enterprise value to invested capital ratio, making the Company an ideal fit for a strategic partner like Provista.
The sale of HRG represents River Cities' 12th successful exit since 2010.