Deal Watch: PacificSource smiles wider with acquisitions

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Archives - September 2009
Sunday, August 16, 2009

IN A SPAN of less than one week, Eugene’s PacificSource Health Plans added more than 63,000 customers to its books, pushing the total number of people it covers in Oregon and Idaho through its individual and group health and dental plans — and its self-insured business — to more than 210,000.

And no, it wasn’t because the masses were stampeding away from talk of President Obama’s public option.

Instead, PacificSource’s spike came from two acquisitions that will add some $65 million a year to the nonprofit’s current $500 million intake.

The first, announced July 28, involved Advantage Dental Plan’s commercial business. The $3.5 million deal put the Redmond dental insurance plan’s 35,000 commercial customers in the hands of PacificSource.

Less than a week later, PacificSource picked up Primary Health, an integrated health care delivery system in Boise, Idaho. Terms of that deal were not disclosed, but it did expand PacificSource’s membership by 16,500 Idahoans with group and individual health plans and 12,600 members covered through self-funded employee benefit plans.

“Both of these acquisitions help us to continue establishing ourselves as more of a regional carrier,” says PacificSource president Ken Provencher, noting that PacificSource is now probably among the top five largest insurance companies in Oregon.

He says the more robust company will have a bigger revenue stream to help meet fixed costs. It will also be able to better serve larger accounts that have come about as a result of recent consolidation. One example: school districts that have pooled together to buy insurance.

PacificSource’s strategy for continued growth includes new markets, like Washington, and possibly other acquisitions. In addition, the company hopes to grow its Medicaid and Medicare business and otherwise respond to what Provencher terms a “transforming market.”

“We just need to make sure we’re positioned to appeal to any and all new ways of selling” health insurance in a market that’s undergoing a transformation, says Provencher.

$8.2M Tualatin Valley Fire & Rescue (Aloha) 38,000-sq.-ft. office building (Tigard)/Dartmouth Square (Portland) 7/13
$2.75M Castle Advisers (Hood River) Tuscany Pines residential development (Bend)/Umpqua Bank (Roseburg) 7/8
$2.5M RLTL (Portland) Rite Aid store (Portland)/Rite Aid (PA) 7/6
$2.3M Cross Creek Trucking (Central Point) 120,000-sq. -ft. warehouse (Medford)/Southern Oregon Sales (Medford) 7/6
$1.7M Kelly and Linda Finerty (Portland) Yorktown Gardens apartments (Portland)/Albertson Trust 7/20
$1.2M ST Boomer (Portland) 14,100-sq.-ft. office building (Portland)/PMT Building (Portland) 7/6
$509,000 Cleanline Surf Shop (Seaside) Old city library building (Seaside)/City of Seaside 7/30
$87,500 Harwood Restaurant (Camas) 1,628-sq.-ft. retail (Camas)/Camas Hotel (Camas) 7/29
ND The Anderegg Joint Living Trust (Portland) 3,263-sq. -ft .commercial (Portland)/Clunas Funding Group (Lake Oswego) 7/30
ND Cinnamon Bums (Tigard) Nine Jamba Juice restaurants (Oregon)/Jamba (CA) 7/1
ND PremierWest Bank (Medford) Two bank branches (CA)/Wells Fargo Bank (CA) 7/22

$52M (Columbia River dredging contract) J.E. McAmis, J.E. McAmis of Oregon (CA)/John McAmis U.S. Army Corps of Engineers 7/24
$8.7M (I-84 paving contract) Oregon Mainline Paving (McMinnville)/Michael Flanigan ODOT and the Federal Highway Administration 7/14
$3.9M (Rogue River bridge rehab contract) Wildish Standard Paving (Eugene)/James Wildish ODOT 7/9
$3.5M (payment for flight service) Delta Airlines (GA)/Richard Anderson Port of Portland 7/8
$3M (solar energy stimulus funds) Portland General Electric (Portland) James Piro/ and PV Powered (Bend)/Greg Patterson U.S. Department of Energy 7/30
$2.9M (aircraft rescue station contract) John Hyland Construction (Springfield)/John Hyland Eugene Airport 7/9
$1.5M (dam rehab contract) Triad Mechanical (Portland)/Steven Zwierzynski U.S. Army Corps of Engineers 7/2
$1.2M (series A funding) AboutUs (Portland)/Ray King Voyager Capital (WA), Northwest Technology Ventures (Portland), et al 7/20
$1.2M (research funds) AVI BioPharma (Corvallis)/Leslie Hudson Action Duchenne (England) 7/30
$1.2M (US 30 road work contract) R & R General Contractors (Wilsonville)/Jesse Rodriguez ODOT 7/7
$732,600 (fuel contract) Epic Aviation (Salem)/Michael Delk Oregon Army National Guard 7/15
$299,900 (landscape improvement contract) Crown Landscape (Aurora)/Stephen Harms City of Tualatin 7/7
$252,000 (bread and bakery products contract) United States Bakery (Portland)/Bob Albers U.S. Department of Veterans Affairs (White City) 7/24
$99,000 (small business training grant) Chemeketa Community College (Salem)/Cheryl Roberts U.S. Department of Agriculture 7/29
$48,600 (new restroom building contract) Romtec (Roseburg)/Timothy Bogan U.S. Army Corps of Engineers 7/28

$3.5M Q3 PacificSource Health Plans (Eugene) Advantage Dental (Redmond) 7/28
$260,000 Q3 Waytronx (Tualatin) Comex Instruments (Japan) 7/6
ND Q3 Mentor Graphics (Wilsonville) Embedded Alley Solutions (CA) 7/30
ND Q3 O'Loughlin Trade Shows (Portland) Northwest Flower & Garden Show (WA) 7/1
ND Q3 Bravo Environmental Services (WA) PPV (Portland) 7/30
ND Q3 Hammerstad Agency (Eugene) Crown General Agency (Eugene) 7/1
ND Q3 PetroCard Systems (WA) Estacada Oil (Estacada) and Northwest Petroleum (Clackamas) 7/13
ND Q3 Webtrends (Portland) Widemile (WA) 7/30
ND Q3 Grady Britton (Portland) YRG (Portland) 7/31



thinking forward
0 #1 thinking forward 2009-09-01 15:22:11
Congrats!! Pacific Source, a brilliant move in light of the overshadowing Gov. takeover. Keep it private. Think forward and solve the problem.
Quote | Report to administrator

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