Genstar Portfolio Company Axia Health Management To Be Acquired by Healthways, Inc.
10/16/2006
For additional information:Genstar CapitalChris Tofalli(914) 834-4334ctofalli@gencap.comSAN FRANCISCO, October 16, 2006 — Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the healthcare services, life sciences, business services, and industrial technology sectors, has agreed to sell portfolio company Axia Health Management, LLC (Axia), the leading national provider of preventive health and wellness programs, to Healthways, Inc. (NASDAQ: HWAY), the nation’s leading provider of Health and Care SupportSM services, for $450 million. Axia and Healthways have signed a definitive agreement and expect to close the transaction before the end of the calendar year, subject to the satisfaction of customary closing conditions. The transaction will be financed through a combination of cash on hand and committed bank debt. Genstar partnered with Nautic Partners LLC and with industry leader L. Ben Lytle, CEO of Axia Health Management, and Hugh Lytle, President of Axia, in 2004 to form Axia Health Management with a goal of creating a new population health management company. Robert J. Weltman, a Managing Director of Genstar, said, “It was Ben’s vision to create a single-source provider of a continuum of preventive health care services. Just two years later, we are extremely pleased with the progress Axia has made in executing against its strategy in creating the leading provider in its sector. The company is performing very well, and we are confident Healthways will help the combined company achieve a new level of growth.” Ben and Hugh Lytle, in partnership with Genstar and Nautic, have successfully built Axia into the leading preventative health company through both strong organic growth and external growth, including the acquisition of five companies, which combined to create a full complement of preventative health programs. According to Ben Lytle, “Joining forces with Healthways represents the next logical step in our vision to deliver clients a full spectrum of leading integrated services designed to create healthier lifestyles. Axia and Healthways create a powerful combination to become the partner of choice among employers, insurance companies and corporations for one-stop preventive care.” In addition to solutions for the commercial market, Axia offers Healthways new solutions for government and government-sponsored health plans. Axia’s cornerstone product, the SilverSneakers