Presidential Financial Corporation (Atlanta, Georgia) has acquired Alamo Capital Corporation (San Antonio, Texas), a provider of health care financing solutions. Both financial institutions are privately held and the terms of this acquisition were not disclosed.
According to Jerry Pavlas, Presidential Financial's Chief Executive Officer: "This marks Presidential's entrance into financing health care enterprises. Given the present business client base in health care which Alamo has established, this provides Presidential with a strong head start and advantage as we move into what has been a growing sector of the commercial finance industry."
"The healthcare finance sector has historically been a niche business with a relatively small number of finance companies that specialize in financing third-party accounts receivable, including Medicare, Medicaid and health insurance companies. We feel there is a large and growing opportunity where we can prosper, and believe that Alamo is uniquely positioned to capitalize on this opportunity," Pavlas explained.
Pavlas describes how: "Presidential Financial will be able to draw upon Alamo's current, existing team of expertise and its reputation in health care finance, while greatly expanding its capability through all of our eleven offices (Atlanta, Georgia Headquarters, Boston, Baltimore, Delaware Valley, Pittsburgh, Chicago, Charlotte, Memphis, Tampa, Orlando and Miami). This means an instant business development network that Presidential already has in place marketing Alamo products."
Alamo (www.alacapco.com) is a pioneer in the healthcare finance industry specializing in this area since 1992, and now processes in excess of $150M in receivables annually. Alamo has an emphasis in home health care, and also finances medical practices, hospitals, nursing homes, hospices, nursing personnel services, ambulance/transport services, and durable medical equipment companies.
According to Phil Hooker, CEO of Alamo Capital, "The merger with Presidential will allow Alamo to expand on what the employees at the company have been developing for years. Presidential's marketing presence and access to the capital markets will allow Alamo to maximize its superior knowledge and over 40 years of combined expertise in the healthcare finance industry."
Mr. Hooker will continue to run Alamo as a subsidiary of Presidential Financial, and all existing employees will be kept in place. Additional Alamo hirings are being planned.
Presidential Financial (www.presfin.com) was founded in 1981 and is a commercial lender providing credit lines from $25,000 - $1,250,000 to enterprises generally unable to qualify for conventional bank financing. Banks will refer their customers to Presidential Financial until the customer's financial status makes them eligible to return to financing which meets traditional bank standards. Presidential provides working capital to business owners with cash flow challenges often tied to expansion. It has provided working capital for more than 5,000 businesses, and makes over $1.2 billion of loans per year. With the acquisition Presidential Financial also increased its bank syndicated credit facility to $110M.
Harbert Private Equity Fund II, LLC, based in Birmingham, Alabama, is the majority stockholder in Presidential Financial and was an advisor and capital source to Presidential for this transaction. Belfer Management, a Presidential stockholder based in New York City, also made a capital contribution.
CONTACT-ROBERT FLEISCHMANN, PRESIDENTIAL FINANCIAL
443-573-1264 (rfleischmann@pfc-net.com)