urgent care centers

Spanos Barber Jesse Invests in Stat Health

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Spanos Barber Jesse & Co. (SBJ) has acquired Stat Health Management, a provider of management services to urgent care centers on New York’s Long Island. This transaction was completed by SBJ in partnership with McLarty Capital and St. Cloud Capital.

Stat Health currently has nine locations throughout Long Island. The company was founded in 2005 by Dr. Marc Salzberg and Dr. Paolo Coppola. Both will remain active with the company under SBJ ownership. Stat Health is based in Smithtown, NY (www.stathealthny.com).

“We reached a point where we realized that we wanted an experienced capital partner to continue and accelerate the expansion and growth we had achieved over the last several years,” said Dr. Coppola. “Dr. Salzberg and I believe the combination of our healthcare expertise with SBJ’s skill in building businesses will benefit patients, payors and the Stat Health organization as a whole.”

The urgent care sector is experiencing positive growth due to higher healthcare demands from an aging population and the lower cost structure of urgent care centers as compared to hospital-based emergency rooms.

“SBJ is providing capital and support to accelerate the expansion of Stat Health urgent care centers within the company’s existing geographic regions in addition to pursuing acquisitions of other urgent care operators,” said Gus Spanos, SBJ’s co-founder and managing director. “Our investment in Stat is the product of a longstanding search for opportunities in the urgent care space.” With the closing of this transaction, the company is planning to open several new urgent care centers in Suffolk County, Long Island under the “Stat Health” brand.

Spanos Barber Jesse & Co. (SBJ) was founded by Gus Spanos, Tom Barber and Bill Jesse. SBJ is classified as a Small Business Investment Company having received its license from the US Small Business Administration in February 2015.  In October 2015, SBJ held a final closing on its debut fund, SBJ Fund, LP, with total capital commitments of $204 million, exceeding its original $150 million target. The new fund invests in lower middle-market consumer, business services and healthcare services companies with up to $100 million in revenue and EBITDA from $2 million to $10 million.  SBJ has offices in San Francisco and Dallas (www.sbjcap.com).

Stat Health is SBJ’s second portfolio investment. Last summer, the firm closed on its first investment by acquiring a controlling interest in Armor Express, a provider of soft body armor and related products to law enforcement, military, correctional and public safety personnel. Armor Express is headquartered in the northern Michigan city of Central Lake (www.armorexpress.com).  SBJ partnered with Generations Management, a family office based in Traverse City, MI, on this transaction (www.generationsmgmt.com).

Kevin Tom of led the transaction for St. Cloud Capital and Christopher Smith led the investment for McLarty Capital. “Stat Health and the growing urgent care industry are on the right side of healthcare trends, with the nation grappling with its aging population and payors challenged with increasing emergency room costs,” said Mr. Tom.

St. Cloud’s investment in Stat Health was made out of its third fund, which has committed capital of $250 million. The firm makes both control and non-control investments in lower middle-market companies that have annual revenues between $10 million and $150 million.  St. Cloud typically invests from $5 million to $20 million per transaction in senior secured debt, subordinated debt, and preferred and common stock. The firm is based in Los Angeles (www.stcloudcapital.com).

McLarty Capital invests in lower middle market companies across a range of industries. Investments can take the form of senior debt, junior debt, structured equity and common equity. The firm is led by Thomas “Mack” McLarty, an Arkansas business and political leader and former White House Chief of Staff for US President Bill Clinton. McLarty Capital has offices in Washington DC, Little Rock, Huntsville, and New York (www.mclartycapital.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-13-16

Seacoast Invests in Righttime Medical Care

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Seacoast Capital has made an investment in Righttime Medical Care, an operator of urgent care centers for both adults and children.

Righttime Medical Care operates 13 urgent care centers and 11 concussion centers throughout Maryland in Anne Arundel, Baltimore, Frederick, Howard and Montgomery counties.  Services include Illness and injury evaluation and treatment, sports injury and concussion care, sports clearance exams, x-rays, laboratory services, and prescription services.  The company’s facilities are open from 7 AM to midnight 365 days a year. Righttime Medical was founded in 1989 by its Chief Executive Officer, Dr. Robert Graw, and is headquartered in Annapolis (www.myrighttime.com) (www.myheadfirst.com).

With the closing of this transaction, Seacoast and Righttime intend to continue the company’s growth by opening new locations, expanding its sports injury and concussion care program, and offering additional services, including telemedicine.

“Righttime has always focused on providing patients with the best care possible in the most convenient setting.  We want to offer access to medical care to more people, and looked for a partner that could help us expand while maintaining our commitment to quality and customer service,” said Dr. Graw. “Seacoast is that partner because they understand and support our mission of simplifying access to trustworthy medical care.  With their help, the future growth potential for Righttime is unlimited, as we expand to provide underserved patients with patient-focused, comprehensive medical care.”

“Righttime is on the leading edge of urgent care. Its focus on convenience, quality, and the patient experience puts Righttime in a unique position to take advantage of tremendous growth opportunities,” said Tim Fay, Partner at Seacoast Capital.  “Righttime’s Management team is strong, and we look forward to working closely with them to implement their growth strategy.”

Seacoast Capital provides between $3 million and $12 million of debt and equity capital for acquisitions, growth, shareholder buyouts, management buyouts, and leveraged recapitalizations. While industry agnostic, Seacoast has a particular interest in the specialty manufacturing, value-added distribution, and business services sectors.  Seacoast targets investments in companies with $20 million to $150 million in revenue and $2 million or more of EBITDA. Seacoast is currently investing its third fund, Seacoast Capital Partners III, with $150 million of capital commitments.  The firm was founded in 1994 and has offices in Boston and San Francisco (www.seacoastcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-14-15