Daily News: October 18, 2019

SSG Advises True Health in Sale of Assets to Cleveland HeartLab


SSG Capital Advisors acted as the investment banker to THG Holdings in the sale of select assets to Cleveland HeartLab, a subsidiary of Quest Diagnostics.

The sale was part of a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware.

True Health is a laboratory provider of diagnostic and disease management solutions. Headquartered in Frisco, TX and with operations in Richmond, Virginia, True Health provides nationwide diagnostic testing services through a network of primary care physicians.

Starting in June 2017, True Health became subject to a series of payment suspensions from the Centers for Medicare & Medicaid Services. The withheld Medicare reimbursements accounted for a large portion of the company’s business, and without this source of revenue, the company had to absorb continuing financial losses. By June 2019, the company was facing severe liquidity constraints imposed by the CMS suspensions and was forced to seek relief under Chapter 11.

After evaluating strategic alternatives, SSG was retained to conduct an expedited marketing process and solicit offers from potential strategic and financial parties. Quest’s bid for select assets of the business was determined to provide the best recovery for the company.

Quest Diagnostics provides diagnostic services for cardiovascular and metabolic disorders and provides services across the United States and internationally.