Primus Sponsors Recapitalization of PathGroup

1/12/2010

CLEVELAND, OHIO – Primus Capital (“Primus”) sponsored a leveraged recapitalization of PathGroup, Inc. (“PathGroup”). Brentwood, TN-based PathGroup provides sophisticated diagnostic services covering all aspects of clinical and anatomic pathology to physician offices, hospitals, surgery centers and clinics in the Mid South and Southeast.

Phil Molner and Scott Seelbach represent Primus on PathGroup’s board of directors.

Primus’ investment in PathGroup builds on its track record of backing successful, growth-oriented companies in the healthcare services space. Primus maintains an active portfolio of healthcare-related companies and continues to seek new investment opportunities in the industry.

“PathGroup is pleased to complete this recapitalization to help launch the next chapter in our company’s growth. We will continue to focus on delivering the highest level of services and care to our clients. This partnership with Primus positions us to accelerate our growth both organically and through select acquisitions,” said Ben Davis, CEO of PathGroup.

“We have been impressed with the strong growth, market share and scope of services offered by PathGroup," said Phil Molner, Managing Director of Primus. “We believe that significant growth opportunities remain in the industry and look forward to continuing to build the company in partnership with the senior management team at PathGroup”.

About Primus
Founded in 1983, Primus invests in established middle-market companies in the business services, healthcare and education industries. Primus partners with experienced management teams to accelerate growth and improve the operating performance of the companies in which it invests. The types of transactions pursued include buyouts, control and minority recapitalizations, and expansion financings.

About PathGroup
Founded in 1997, PathGroup offers the latest in sophisticated diagnostic services covering a full range of clinical laboratory and anatomic pathology testing in Tennessee, Kentucky, Indiana, Illinois, North Carolina and Georgia. The combined test menu offering includes all pathology subspecialties, the latest in automated pap smear screening technology, as well as the latest in esoteric and molecular testing capabilities. The company’s medical diagnostic services combined with its sophisticated web-based PathConnect order/entry system and reporting system provide clients with the highest level of specialty service available. More information about PathGroup can be found at www.pathgroup.com.