Liberty Corporate Finance is pleased to announce the completion of the Management Buy-Out of Medicals Direct Group from its US quoted parent, Hooper Holmes Inc., for total consideration of $15.25million.

MDG is the largest outsourcer of medical evidence gathering and underwriting services to the UK Life Assurance market place, using bespoke technology and its national network of trained nurses and doctors, to assist insurance companies in outsourcing on a more efficient basis. Headquartered in Stanmore, Middlesex, MDG has a turnover of over £22m and also provides rehabilitation, absentee management and medical assessment services from its own clinics located across the country to its Corporate client base.

Liberty advised the management team of MDG throughout the transaction and introduced Bank of Ireland to the deal, who provided £6m of debt. The equity was provided by Investec and private individuals.


Steve Thomson from Liberty commented: “Medicals Direct is a unique business with excellent relationships with all the major Life Assurers providing outsourcing solutions to them, covering underwriting, medical assessment and other back office functions. The business has growth opportunities across all its operations including more efficient gathering of medical evidence thorough tele-interviewing, cross selling of its clinic services and expansion of its other health related activities. Liberty has been retained by the Group and look forward to helping the business through its next growth phase.” Mike Benton, Managing Director of MDG commented: “Finally freed from the chains of our US parent we can continue to grow and develop the business into a substantial medical assessment and Life Assurance insurance outsourcing business. Liberty was instrumental in helping us acquire the business from Hooper Holmes and we valued their advice and judgement through the process and look forward to working with them in the future.”

PREVIOUS DEAL ANNOUNCEMENTS

Selecta

1 October 2007