Chicago, Illinois - Code Hennessy & Simmons III L.P. completed the sale of Corporate Benefit Services of America, Inc. (CBSA), a Fund III portfolio company since 1999. CBSA was sold to Churchill Capital, a Minneapolis-based private equity firm.

Corporate Benefit Services of America, Inc., is a diversified healthcare services company that provides benefit administration functions for self-funded employer groups; fully insured small group underwriting, administration and reinsurance; comprehensive medical management, and bill negotiation; and outsourced back-office services for mid-sized insurance companies. The company is headquartered in Minnetonka, Minnesota.

CHS acquired CBSA in April 1999 as a platform investment for its third fund. According to Richard Lobo, a Managing Director at Code Hennessy & Simmons, “CBSA stood very well with CHS’ focus on the outsource business services sector and by working closely with management over a four year investment period and were able to generate significant returns to our shareholders despite difficult economic conditions. CBSA is an excellent business and we believe they will continue to be leaders in their industry.”

Phil Christianson, President and Chief Executive Officer of CBSA remarked, “We are pleased that CBSA continues to outperform the industry and exceed the expectations of both clients and investors.”

The implementation of the investment strategy at CBSA resulted in a significant increase in revenue and profitability for the company. During CHS’ ownership, the Company completed the acquisition of Robey-Barber Insurance Services Corporation and its medical management services subsidiary, MC2000+, and established a call center which resulted in improved productivity at the customer service level.

Founded in 1988, Code Hennessy & Simmons LLC is a Chicago-based private equity firm that manages approximately $1.5 billion of capital in four funds. CHS focuses on building shareholder value in middle market companies through strong relationships with management teams and sound investment strategies.