Covington Associates Advises on 21st Century Health and Benefits in Sale to FBMC
Boston, MA — January 3, 2005 — Covington Associates announced today that it has acted as the sell-side advisor to 21st Century Health and Benefits, Inc. (“21st Century”) in its sale to Fringe Benefits Management Company (“FBMC”), a. leading provider of employee benefits products and services. The terms of the transaction were not disclosed.
21st Century, based in Cherry Hill, NJ, is a Third Party Administrator for medical dental and related benefits for clients primarily in New York, New Jersey and Pennsylvania. 21st Century offers its services to demanding clients who are partially self-funded and self insured and have the desire for customized administration. FBMC is a nationally recognized Benefits Administrator, specializing in tax -favored accounts, with headquarters in Tallahassee, Florida. Founded in 1976, FBMC is one of the largest administrators of tax-favored accounts in the nation. FBMC has clients in 20 states and administers flexible benefit programs for numerous state, school district, city, county, and private employers throughout the nation.
Eric Shealy, a Managing Director at Covington Associates and lead advisor to 21st Century on the transaction, said “This transaction is a classic win-win for both parties. With 21st Century on board, FBMC extends its benefit administration capability, diversifies its customer base and gains additional geographic presence in the Northeast. ”
David Markson, Founder and Co-Owner of 21st Century said, “Covington Associates worked with us to find the best strategic option for our company going forward. As a part of FBMC, we will strengthen our base, as well as expand upon our current product offerings.”
About 21st Century Health and Benefits, Inc.
21st Century Health & Benefits is a premier third party administrator that delivers custom-designed employee benefit services and products to a diverse group of partially self-funded and self-insured clients. With more than 15 years of experience as an administrator of health plans, the 21st Century advantage is in its highly automated processes, thorough understanding of benefit plan administration, experienced management team, full services offerings, commitment to advanced technology, and accountability to its client base. To learn more about 21st Century, please visit www.21stcenturyhealth.com.
About Covington Associates
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to over $1 billion for both private and publicly traded companies. To learn more about Covington Associates, visit www.covingtonassociates.com.