Flexpoint Forms New Platform to Acquire Dialysis Clinics, Closes First Transaction

Flexpoint Forms New Platform to Acquire Dialysis Clinics, Closes First Transaction

Corva, a new platform company formed by private equity firm Flexpoint Ford and Jerry Simonsen to acquire, develop and operate dialysis clinics, has signed an agreement to acquire the assets of Innovative Renal Care.

“We are excited to partner with Jerry to build an industry-leading dialysis company focused on delivering clinically superior treatments to patients,” said Ethan Budin, a Senior Principal at Flexpoint Ford. “We believe Jerry’s combination of industry expertise and operational experience makes him an ideal partner as Flexpoint Ford commits to a platform in the dialysis industry.”

Innovative Renal Care is located in Houston and currently serves approximately 100 patients with end stage renal disease. Corva will continue to acquire independent dialysis clinics, develop de novo clinics in partnership with nephrologists and seek other opportunities to integrate all dialysis services throughout North America. The company is based in Greenwood Village, CO (www.corvaclinics.com).

Flexpoint Ford plans to invest up to $75 million of equity capital to support Corva’s strategy. Mr. Simonsen, the former CEO of Renal Management, which was acquired by Gambro Healthcare, will serve as Chief Executive Officer of Corva.

“I am thrilled about the opportunity to build a significant dialysis company and excited to begin the process in the Southeast,” said Mr. Simonsen. “The Principals at Flexpoint Ford have a long history of backing experienced managers and providing them with the resources and support required to build successful companies through both organic growth and acquisitions. Flexpoint Ford’s very successful track record with other healthcare services companies makes them the ideal partner for Corva.”

Flexpoint Ford seeks to invest from $10 to $100 million in companies operating in the healthcare and financial services sectors. Flexpoint Ford currently has $1 billion in capital under management. The firm is based in Chicago, IL with an additional office in New York, NY (www.flexpointford.com).

“We are enthusiastic about the IRC acquisition and the larger opportunity to build a high-quality business in the dialysis sector,” said Perry Ballard, a Principal at Flexpoint Ford. “We are actively looking for acquisitions and see a number of compelling investment opportunities in the market today.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-3-12

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