Prescott’s, a portfolio company of Atlantic Street Capital, has acquired Heartland Medical Sales & Service.
The buy of Heartland, Prescott’s first add-on acquisition, expands the company’s operating capabilities into the anesthesia specialty services and support sector. Atlantic Street acquired Prescott’s in January 2019 through its $500 million fourth fund.
Heartland is a provider of service, repair, refurbishment, sales and rental of anesthesia machines and related equipment. The company’s equipment capabilities range from single replacement devices to the complete outfitting of surgery centers.
Prescott’s acquisition of Heartland is the first of several anticipated acquisitions in the anesthesia refurbishment, maintenance, repair and services sector. More generally, the company is also interested in similar opportunities in the contractual outsourced service, repair and maintenance business models used by hospitals, integrated delivery networks, surgery centers and specialty practice environments.
Prescott’s is a provider of refurbishment, maintenance, repair and service work for surgical microscopes that are used in operating rooms and ambulatory surgery centers primarily in the neuro, ophthalmic and ENT surgical specialties. Within the healthcare sector, it is common to conduct preventative maintenance for surgical microscopes annually. Prescott, led by CEO Dylan DiJulio, was founded in 1984 and is headquartered north of Colorado Springs in Monument, Colorado.
“The anesthesia category is a natural extension of our business given the operational similarity and highly specialized skill required to provide field service support and repair and reconditioning capabilities,” said Mr. DiJulio. “Brad Rumph has built an impressive company perfectly aligned with our service-focused model. We believe our existing client base will welcome the additional capabilities that further differentiate us as a market leader.”
Atlantic Street invests from $15 million to $75 million in companies with EBITDA from $4 million to $25 million. The firm invests across a range of sectors but has a specific interest in healthcare, multi-unit retail, business services, and consumer products and services. The firm closed its fourth fund, Atlantic Street Capital IV LP, with $500 million of committed capital in September 2019. Atlantic Street was founded in September 2006 by Peter Shabecoff and is based in Stamford, Connecticut with an additional office in West Palm Beach, Florida.
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