New MainStream Adds On to Platform Companies

The recent crop of healthcare services platforms owned by New MainStream Capital is moving to the add-on stage. Last week brought two acquisition announcements from Omni Eye Services and CORDENTAL Group.

Both companies were acquired in 2017. New MainStream committed $25 million in equity capital to buy CORDENTAL in March 2017. The Cincinnati-based company is a dental support organization that provides business support services to affiliated dental practices in the Mid-Atlanta, Midwestern and Southeastern regions. Omni Eye Services, based in Iselin, New Jersey, is an optometric referral practice providing a full range of specialty services for the advanced treatment of eye diseases. No financial terms were disclosed when the deal was announced in July 2017.

In mid-January 2018, both companies announced add-on acquisitions. For CORDENTAL, the deal for Chattanooga Dental Care in Tennessee was already its third add-on under New MainStream. Omni Eye Services made its first add-on with Phillips Eye Center, a 10-ophthalmologist practice in Elmwood Park, New Jersey.

New MainStream’s current portfolio includes AAD Dermatology Management, formerly known as Anne Arundel Dermatology when the firm acquired it in June 2015. Since then, AAD Dermatology has made four acquisitions, two in 2016 and two in 2017.

The firm got into the Behavioral Health sector in May 2016, with its acquisition of Constellation Behavioral Health, LLC in Mill Valley, California. Constellation, which provides inpatient and outpatient programs for addiction, mental health and co-occurring behavioral health disorders.

A new healthcare service platform was added in October 2017, when New MainStream recapitalized GrapeTree Medical Staffing, which offers nursing staffing solutions to long-term care facilities and hospitals. We expect to see a few add-ons announced later this year.

 

 

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