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KippsDeSanto & Co. advises CRAssociates, Inc. on its sale to Valor Healthcare, a portfolio company of Trive Capital

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KippsDeSanto & Co. advises CRAssociates, Inc. on its sale to Valor Healthcare, a portfolio company of Trive Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, CRAssociates, Inc. (“CRA” or the “Company”) to Valor Healthcare (“Valor”), a portfolio company of Trive Capital.

Headquartered in Newington, Virginia, CRA is a leading operator of Community-Based Outpatient Clinics (“CBOCs”) for the Department of Veterans Affairs nationwide, providing the U.S. Veteran population with easy and convenient access to quality healthcare. These clinics provide outpatient services, including but not limited to routine diagnostic procedures, immunizations, behavioral healthcare, and health and wellness visits.  In addition, CRA manages an acclaimed occupational health program with multiple clinics spanning several states.

The transaction is expected to enhance Valor’s geographic reach and strengthen its position within existing core markets.

We believe this transaction highlights several key trends in the Government Services M&A market:

  • Enhanced interest in health-related markets given ongoing demographic and anticipated budget trends
  • Significant interest for companies with entrenched customer relationships and strong past performance qualifications
  • Private equity continues to aggressively deploy capital through its existing portfolio companies to supplement growth and accelerate to scale

About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency

 Press Release

October 5,2021

Valor Healthcare Acquires CRAssociates

 Dallas, Texas – Valor Healthcare, Inc. (“Valor” or the “Company”), a portfolio company of Trive Capital, is excited to announce its recent acquisition of CRAssociates, Inc. (“CRA”).  Founded in 1997 and headquartered in Springfield, VA, CRA is an outsourced provider of Community-Based Outpatient Clinics (“CBOC”) for Veteran Affairs Medical Centers. Key service offerings include design and development of mission critical healthcare facilities logistics and management of healthcare professionals to provide comprehensive, cost-effective healthcare services for government and corporate clients throughout the United States.

Dr. Scott Wise, CEO of Valor and a veteran himself stated, “Valor is a leader in the CBOC market, and we are excited about the addition of the CRA leaders and staff to join in our continued success and expansion. We share in our passion for the mission and look forward to continuing to enhance our healthcare service offerings for our federal government partners.”

“We would only embark on the transfer of our CRA family to the best leader in our industry as we believe there is no compromise on quality and doing what is right for our veterans,” commented Charlie “Chief” Robbins, COO, Senior Executive Vice President at CRAssociates, Inc.  “With their leadership and combined CRA leadership we now have here at CRA, Valor becomes a powerful leader postured for growth and success for the future across the U.S.”

Conner Searcy, Managing Partner at Trive, added, “We have been pleased with our partnership with the Valor management team and continue to be firm believers in the Company’s mission. The addition of CRA is the first step in expanding the Company’s reach in serving our nation’s veterans and brings additional capabilities in the occupational health and wellness space. The team is keen on continuing to provide high quality healthcare and ancillary services in our communities and serving federal government customers.”

Valor is actively seeking add-on opportunities in the federal agency contracted healthcare services industry, including but not limited to, medical or medical facility contracting, mental health and behavioral services, onsite healthcare and wellness for federal offices, government and medical staffing, and OCONUS opportunities within the healthcare and government contracting industries.

About Valor Healthcare, Inc.

Valor Healthcare Inc. will now operate more than 50 VA community-based outpatient clinics in the United States as a contractor for the US Department of Veteran Affairs. Valor provides a full range of medical services to veterans through the operation of CBOCs tailored to meet the specific needs of local VA medical centers. The company’s comprehensive set of services includes primary care, diagnostics, laboratory, telehealth, behavioral health, and occupational health and wellness.

About Trive Capital

Trive Capital is a Dallas, Texas based private equity firm with approximately $3.6 billion in assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 billion in revenue across Trive’s targeted industry sectors and situations.

Getting Deals Done 2021

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KippsDeSanto’s DealView – Top 10 M&A Deals of the Quarter

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KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended September 30, 2021.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Parker Hannifin Corporation’s (NYSE: PH) pending $9.9 billion acquisition of Meggitt plc (“Meggitt” or the “Company”) (LSE: MGGT). Meggitt, a leading engineering company headquartered in Coventry, United Kingdom (“U.K.”), provides high performance components and sub-systems for aerospace, defense, and selected energy markets. The acquisition of Meggitt nearly doubles the size of Parker Hannifin’s Aerospace Systems segment and provides economies of scale that will enable the combined entity to better serve their customers through technological innovation, a broader combined product portfolio, and expanded geographic footprint. To alleviate national security concerns and help win the U.K. government’s support, Parker Hannifin agreed to several legally binding commitments including, maintaining Meggitt’s U.K. headquarters, boosting R&D expenditures in the country, and ensuring that Meggitt continues to meet its contractual obligations. One week after the announcement of Parker Hannifin’s acquisition proposal, TransDigm Group Inc. (NYSE: TDG) made an unsolicited offer of $9.7 billion to acquire Meggitt. However, on September 7, 2021, TransDigm withdrew its proposal citing “limited due diligence information” being made available. On September 21, 2021, an overwhelming majority of Meggitt shareholders approved the acquisition offer from Parker Hannifin. The transaction is expected to close in the third quarter of 2022.

The GTS deal of the quarter is the $1.65 billion acquisition of Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital, by Huntington Ingalls Industries, Inc. (“HII”) (NYSE: HII). Based in McLean, VA, Alion provides advanced engineering and Research and Development services in the areas of Intelligence, Surveillance, and Reconnaissance (“ISR”), military training and simulation, cyber, data analytics, and other technology based solutions to the Department of Defense and Intelligence Community. HII will integrate Alion into its Technical Solutions division. The transaction represents another HII acquisition of a high-growth defense and national security company, following its acquisition of the Autonomy division of Spatial Integrated Systems, Inc. in January of 2021. The acquisition of Alion is one of several high-profile deals recently consummated in 2021 that highlight a continued desire by both public and private equity-backed strategic buyers to make transformational acquisitions of scale. Other noteworthy recent deals of size include the acquisition of Dovel Technologies, Inc. by Guidehouse, LLP and acquisition of Salient CRGT by GovernmentCIO, LLC. Total GTS deal volume in 2021 is approaching 150 year-to-date, or 200 from an annualized perspective, which is 80% and 50% higher than the 111 and 133 deals closed in 2019 and 2020, respectively.

KippsDeSanto & Co is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.