What did Ridgemont Equity Partners pay for American Outcomes Management?

Ridgemont Equity Partners acquired American Outcomes Management for $170.0M in 2021 (11.3x EBITDA), equivalent to 2.10x revenue. Target revenue was approximately $80.0M. Target EBITDA was approximately $15.0M.

What does American Outcomes Management do?

American Outcomes Management is a pharmacy business.

What multiple did Ridgemont Equity Partners pay for American Outcomes Management?

11.3x EBITDA and 2.10x revenue, based on disclosed deal value of $170.0M and disclosed financials.

M&A TRANSACTION · 2021

American Outcomes Management acquired by Ridgemont Equity Partners

$170.0M· 11.3x EBITDA· 2.10x revenue

Target

American Outcomes Management

Acquirer

Ridgemont Equity Partners

Private Equity buyer

Disclosed financials at time of acquisition

Revenue

$80.0M

EBITDA

$15.0M

Deal Value

$170.0M

EV/EBITDA

11.3x

Context

This $170.0M acquisition of American Outcomes Management by Ridgemont Equity Partners sits in the pharmacy sub-vertical. The 11.3x EBITDA multiple paid in 2021 can be compared against the population median for pharmacy transactions of similar size on our Pharmacy valuation hub. Ridgemont Equity Partners is acquiring as a private equity buyer; see how PE acquirers typically price pharmacy businesses on our Pharmacy PE buyer-pool page.

Source

Data sourced from Press reporting / online presentations. All figures reflect disclosed values at the time of the acquisition; no estimated or imputed data. Methodology

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Citation: ExitValue.ai. (2021). American Outcomes Management acquired by Ridgemont Equity Partners. https://exitvalue.ai/deals/american-outcomes-management-acquired-by-ridgemont-equity-partners-hc-2021-0095