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Sverica Acquires Women’s Health USA

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Sverica Capital Management has acquired a majority interest in Women’s Health USA. This acquisition marks Sverica’s fourth investment from its fourth fund which closed at its $275 million hard cap in March 2016.

Women’s Health USA (WHUSA) is a national physician practice management organization focused on women’s health, including obstetrics, gynecology and in vitro fertilization. The company provides physician practices with a full suite of management services including revenue cycle management, payor contracting, electronic medical records and technology management, finance and accounting, and risk management. The company was founded by its CEO Robert Patricelli in 1997 and is based in Avon, CT (www.whusa.com).

“We were attracted to WHUSA because of their joint venture model which allows physicians to remain autonomous but also leverage all the resources and expertise of a national practice management platform,” said Gregg Osenkowski, a Vice President at Sverica.

“Our new partnership with Sverica will give WHUSA the capital and backing to grow faster and to be more supportive of women’s health physicians who are looking to remain independent but at the same time be part of a national network of high quality professionals,” said Mr. Patricelli.

Sverica invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include IT & business services, healthcare services and high value industrial. Sverica was founded in 1993 and has raised over $700 million of capital across four funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

© 2017 Private Equity Professional | August 10, 2017

Pamlico Sells Physicians Endoscopy to Kelso

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physicians endoscopy nf1Pamlico Capital has sold its portfolio company Physicians Endoscopy to Kelso & Company. Guidon Partners is co-investing alongside Kelso & Company on this transaction. Physicians Endoscopy was acquired by Pamlico Capital from Silver Oak Services Partners in August 2013.

Physicians Endoscopy (PE) is a developer and manager of freestanding, single-specialty endoscopic ambulatory surgery centers in partnership with practicing physicians and hospitals.  The company currently owns and manages 42 facilities (up from 29 at acquisition) across the United States, in partnership with over 300 gastroenterologists and eighteen hospitals (up from 8 at acquisition). PE was founded in 1998 and is headquartered near Philadelphia in Jamison, PA (www.endocenters.com).

“We are very grateful to the Pamlico team for all that they have done to help us grow,” said Barry Tanner, PE’s CEO. “They have allowed us to stay focused on helping physicians deliver high-quality care in the most patient friendly and cost effective setting. Our partnership with Pamlico has been absolutely wonderful.”

pamlico nf2Pamlico Capital invests from $25 million to $100 million in companies with total enterprise values of between $50 million and $250 million.  Sectors of interest include business and technology services, communications, and healthcare. Pamlico was founded in 1988 and is based in Charlotte (www.pamlicocapital.com).

“Kelso is thrilled to be partnering with Barry Tanner and his team. Physicians Endoscopy has an unparalleled reputation as a value-added partner to GI physicians, and we look forward to supporting the company’s continued growth and success,” said Hank Mannix, a Partner at Kelso.

kelso nf1Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 115 companies in a range of industry sectors. The firm is currently investing out of its eighth fund – Kelso Investment Associates VIII, LP – with $5.1 billion of capital. Kelso was founded in 1971 by Louis Kelso and is based in New York (www.kelso.com).

guidon nf1Guidon Partners, a co-investor on this transaction, was founded in November 2014 by fourteen senior health care executives to make co-investments alongside venture, growth equity and buy-out funds. The firm is based in Reston, VA (www.guidonpartners.com). As part of its co-investment, Guidon has appointed Greg Roth – a founder and partner of the firm and the former CEO of TeamHealth (a provider of physician staffing services (NYSE: TMH)) – to the Physicians Endoscopy board of directors.

© 2016 Private Equity Professional • 8-24-16

Audax to Acquire Gastro Health

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gastro nf1Audax Private Equity has entered into an agreement to acquire Gastro Health, a gastroenterology physician practice management company. Partnering with Audax on the transaction are Dr. James Leavitt, President/Co-Founder of Gastro Health, CEO Alex Fernandez, and other members of the Gastro Health team.

gastro nf12Gastro Health was founded in 2006 with the merger of GI Care Center, Gastroenterology Associates, and Gastroenterology Group. Today, the company operates 21 health centers across South Florida and has acquired 16 new centers and on-boarded over 30 new physician partners since its founding. The company is headquartered in Miami (www.gastrohealth.com).

Alex Fernandez nf1“Audax has a proven track record of helping companies complement organic expansion initiatives with add-on acquisitions,” said Mr. Fernandez.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

Geoffrey Rehnert nf55“Gastro Health is a leading provider of gastroenterology services with an unparalleled reputation for providing exceptional care to its patients. We look forward to partnering with Dr. Leavitt and Mr. Fernandez, and the rest of the Gastro Health team to continue growing the business organically and through add-on acquisitions,” said Geoffrey Rehnert, Co-CEO of Audax Group.

Deloitte Corporate Finance (www.investmentbanking.deloitte.com) was the financial advisor to Gastro Health and DLA Piper (www.dlapiper.com) served as legal counsel. Ropes and Gray (www.ropesgray.com) served as legal counsel to Audax.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-11-16

Varsity Sells Forefront Dermatology to OMERS

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forefont nf1Varsity Healthcare Partners has sold its majority interest in Forefront Dermatology to OMERS Private Equity. This sale represents the first realized exit for Varsity Healthcare Partners which was founded in October 2012 by David Alpern and Kenton Rosenberry.

Varsity Healthcare Partners (VHP) acquired a majority stake in Forefront, a provider of practice management services to dermatology clinics, in May 2014. Since acquiring Forefront, VHP has grown the business from 37 clinics with 42 board-certified dermatologists operating in three states, to 82 clinics with 90 board-certified dermatologists operating in 11 states.

Kenton Rosenberry nf1“In partnership with Forefront’s management team, we aggressively and successfully grew the company while maintaining the core tenets of delivering exceptional patient care and establishing a terrific work environment for physicians,” said Kenton Rosenberry, a partner with VHP.

The sale to OMERS follows VHP’s and Forefront’s completion of the add-on acquisition of Premier Dermatology in November 2015. This acquisition provided an entry point into Illinois for Forefront Dermatology, filling a gap in the company’s Midwest footprint. Like Forefont, Premier Dermatology provides medical and surgical dermatology, cosmetic surgery, and a range of other aesthetic services and products. The company – based near Chicago in Crest Hill, IL – was considered to be one of the larger providers of dermatology services in Illinois.

According to VHP, Forefront Dermatology is one of the five largest dermatology practices in the United States and provides general, surgical and cosmetic dermatology services as well as laboratory services. The company’s network consists of 82 clinics across 11 states, including Wisconsin, Michigan, Indiana, Illinois, Iowa, Kentucky, Minnesota, Missouri, Ohio, Pennsylvania and Virginia. Forefront Dermatology is headquartered north of Milwaukee in Manitowoc, WI (www.forefrontdermatology.com).

varsity nf1Varsity Healthcare Partners is an investor in founder and/or entrepreneur owned companies that are active in the healthcare services sector and have from $5 million to $15 million of EBITDA. The firm has offices in Los Angeles and Stamford (www.varsityhealthcarepartners.com).

“We have enjoyed working closely with the VHP team over the past 18 months and building an industry-leading company in the dermatology sector,” said Dr. Kenneth Katz, founder and president of Forefront. “VHP’s domain expertise and commitment to the Forefront values has enabled us to surpass our growth objectives without sacrificing our culture and commitment to excellence.”

omers nf1OMERS Private Equity, the buyer of Forefront Dermatology, manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto with offices in New York and London and has $6 billion of investments under management (www.omerspe.com).

New York-based investment bank Jefferies (www.jeffries.com) was the financial advisor to Forefront Dermatology and VHP, and Morgan, Lewis & Bockius (www.morganlewis.com) provided legal counsel.

© 2016 Private Equity Professional • 2-11-16

Tonka Bay Invests in United Skin

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tonka bay nf1Tonka Bay Equity Partners has made an investment in United Skin Specialists, a provider of management services to dermatology practices in the Midwest.  Tonka Bay partnered with Dr. Brian Zelickson, the CEO of United Skin Specialists, on this transaction.

The United Skin Specialists (USS) network provides medical and cosmetic dermatology care, including Mohs surgery (Mohs surgery, also known as chemosurgery, developed in 1938 by surgeon Frederic Mohs, is microscopically controlled surgery used to treat common types of skin cancer) and pathology. Tonka Bay plans to increase the USS network of offices and services through both acquisitions and organic growth.

Dr Brian Zelickson nf1Dr. Brian Zelickson and his father, Dr. Alvin Zelickson, currently provide dermatology services through multiple offices in the Minneapolis metro area under the Zel Skin & Laser Specialists brand. Services include laser therapies, microdermabrasion and vibradermabrasion, Botox, and chemical peels and dermal fillers (www.zelskin.com).

“Over the years our team of doctors and support staff has worked hard to develop a reputation of the highest quality medical care centered on the patient’s needs.  We feel this partnership will allow us to focus even more on patient care and growth as USS provides management services to our practices,” said Dr. Brian Zelickson.

Steve Soderling nf2United Skin Specialists is Tonka Bay’s fourth platform investment in the practice management industry. Steve Soderling, a partner of Tonka Bay, is leading this investment and is a member of the USS board.  “We have enjoyed being involved in the practice management industry for the past 15 years and are excited about the opportunity to work with a physician of Dr. Zelickson’s caliber in dermatology.”

Tonka Bay Equity Partners invests in manufacturing, value-added distribution and business services companies that have EBITDAs greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-16-15

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