Shore Capital Partners has sold SCP Specialty Infusion, a home infusion services company, to AxelaCare Health Solutions, a portfolio company of Excellere Partners. The transaction closed on October 31, 2013.
Infusion services primarily involve the intravenous (i.e., directly into veins or muscles, or under the skin) administration of medications to treat a range of acute and chronic health conditions. Physicians and hospitals generally refer patients to specialty infusion providers to continue their therapies at home or in other non-acute settings. The market for specialty infusion is approximately $10 billion and growing at approximately 8% to 12% annually.
SCP Specialty Infusion was created in November 2009 when Shore Capital Partners teamed with Chris York, CEO, and Mitch Friedman, CFO, both home infusion industry veterans, to complete a roll-up strategy in the space. In July 2010, the management team and Shore made their platform investment in Arizona-based Sirona Infusion. Over the next three and a half years, Shore and management completed three add-on acquisitions and built three de novo pharmacies. Shore and management integrated these regionally diverse companies by standardizing operations with weekly and monthly metric management and a unified IT platform. Shore and management also consolidated HR, corporate compliance, accounting and finance.
Today, SCP Specialty Infusion is a provider of acute home infusion services in the Western US. Its network of pharmacies, infusion centers, and nursing staff spans Arizona, New Mexico, California, Colorado, and Oregon. Therapies delivered include the full spectrum of acute and chronic infusion therapies including anti-infective, oncolytic, total parenteral nutrition, cardiac, hydration, and other intravenously delivered medicines. The company is based in Chandler, AZ (www.sironainfusion.com).
“Over the last three and a half years, we’ve built a company on the model of putting the patient first,” said Chris York, CEO of SCP Specialty Infusion. “We are confident that this model, combined with aggressive business development and an intense focus on metric management, enabled us to build a scarce asset in the home infusion industry. Shore’s operational oversight and financial support coupled with management’s industry expertise were highly complementary and helped facilitate the platform’s growth.”
Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services/contract research. Shore has completed 11 investments across the home infusion, lab services, physical therapy, and urgent care sectors. The firm was founded in 2009 and is based in Chicago (www.shorecp.com).
“We are pleased to have partnered with management to build SCP Specialty Infusion into one of the preeminent home infusion providers in the country,” said Justin Ishbia, Founder and Managing Partner of Shore Capital Partners. “Further, the successful execution of our value creation plan has allowed us to complete the sale of SCP Specialty Infusion on favorable terms for our investors.”
AxelaCare, acquired by Excellere Partners in December 2010, is a provider of home infusion therapy services, including Intravenous Immune Globulin, Hemophilia and other traditional home infusion services, such as Intravenous Antibiotics and Total Parenteral Nutrition. The company currently operates three pharmacies serving patients in 25 states. AxelaCare is headquartered in Lenexa, KS (www.axelacare.com).
Excellere Partners invests in middle-market companies with revenues ranging from $20 million to $150 million. Sectors of interest include healthcare; specialty foods; industrial technology and services; business services; and education and training. The firm has $737 million of capital under management and is based in Denver, CO (www.excellerepartners.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-25-13