SSG Capital Advisors acted as the co-investment banker to CHI St. Luke’s Health Emergency Center in a transaction involving the company’s minority shareholder selling its equity interests to the company’s majority shareholder, St. Luke’s Health System Holdings. The transaction closed in June 2017.

The Emergency Center was formed in 2016 as a joint venture between a group of physicians and St. Luke’s to operate several freestanding emergency departments throughout the greater Houston area. The FSEDs have provided a variety of emergency services such as comprehensive adult and pediatric emergency care, clinical staff with emergency room experience, on-site emergency laboratory services, radiology services and on-site surgical procedures.

Lower-than-expected patient volumes and reimbursement-related issues led the company to explore strategic alternatives. SSG was retained as co-investment banker along with Statesman Business Advisors to explore the company’s options, including a sale of all or parts of the business.

SSG ran a comprehensive sale process that generated significant interest from the market, with St. Luke’s offer for the remainder of the equity in the joint venture ultimately being the solution which provided the best outcome to all stakeholders.

SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions.