Clarion 

Capital 

Partners, 

LLC 

Acquires 

U.S. 

Nursing 

Corporation 

Clarion Capital Partners, LLC Acquires U.S. Nursing Corporation

Clarion Capital Partners, LLC, a private equity firm focused on investing in middle-market, growth-oriented businesses, today announced the acquisition of U.S. Nursing Corporation, the largest privately held provider of travel nurse staffing, for $113.5 million. Clarion funded the acquisition through a combination of equity, senior bank debt and subordinated debt. Post-transaction, Clarion will own 80% of U.S Nursing, with management and former owners retaining the balance.

U.S. Nursing was established in 1989 and is based in Denver, Colorado. The sale of the company was brought about for estate planning purposes associated with the passing of the Company’s founder, Daniel Mordecai, in 2002.

“Due to the chronic shortage of registered nurses, U.S. Nursing has achieved remarkable organic growth, realizing compounded annual growth rates of over 60% over the last three years,” said Marc Utay, Managing Partner of Clarion. “Broader trends, such as the aging of the population and shortages and aging of the existing nurse pool, will drive double digit growth of the nurse staffing industry. U.S. Nursing offers an exceptional platform for organic growth and acquisitions, and we look forward to working with management to build upon the Company’s success.”

Gregory L. Mikkelsen, President & Chief Executive Officer of U.S. Nursing, commented: “Through Dan’s visionary leadership and the team he put in place, U.S. Nursing has grown to become the premier flexible, rapid-response company in the nurse staffing industry, capable of filling critical open positions in half the time of competitors. The partners at Clarion bring prudent operational, investment and capital markets expertise to our business. Going forward, we will have the balance sheet and strategic counsel on hand to accelerate the Company’s already impressive rate of growth.”

Clarion was advised on the transaction by Paul, Weiss, Rifkind, Wharton & Garrison LLP. U.S. Nursing was advised by Sherman & Howard, and Raymond James & Associates. Senior debt was provided by Merrill Lynch Capital, which served as Administrative Agent and Co-lead Arranger, and by GE Capital, which served as Syndication Agent and Co-lead Arranger. Oaktree Capital Management provided the subordinated debt.

Clarion Capital Partners, LLC was formed in 1999 to make private equity investments in middle-market, growth-oriented businesses in which it can add significant strategic value. The firm focuses on industries in which it can leverage its experience and relationships to benefit its portfolio companies, including consumer products, business services, specialty financial services, specialty retail, and niche media/entertainment.

Clarion’s target investment size is $15 to $50 million of equity. Over their years of private equity experience, the firm’s investment professionals have achieved aggregate returns well in excess of 50%, including such representative investments as Imax Corporation, All-Clad Holdings Inc., Snapple Beverage Company, Cascade Entertainment Group, and Encore Capital Group. Its investment professionals are former employees of Drexel Burnham Lambert, Wasserstein Perella, McKinsey & Co., Ripplewood Holdings, Triarc Companies, Credit Suisse First Boston and Bear Stearns.