U.S. Renal Care has new owners, as of February 13. It marks the first renal-related transaction in 2019 and it won’t be the last. The national dialysis provider was backed by a consortium of private equity firms such as Leonard Green & Partners, Frazier Healthcare Partners, New Enterprise Associates and Cressey & Company.
Stepping in to take over is Bain Capital Private Equity, Summit Partners and Revelstoke Partners, with participation by the company’s executive management team. Financial terms were not disclosed, naturally.
U.S. Renal Care works with nephrologists to develop, acquire and operate outpatient treatment centers for people suffering from chronic kidney failure or end stage renal disease. It provides in-center and at-home hemodialysis, as well as at-home peritoneal dialysis services, to 25,000 patients in 335 dialysis facilities in 32 states and the Territory of Guam.
The company will continue to operate under its current management team, led by CEO and founder Chris Brengard, who will remain significant investors in the company.
2018 saw five deals targeting dialysis companies, three of those announced by Frensenius Medical Care (NYSE: FMS) as it moved deeper into China. U.S. dialysis giant DaVita (NYSE: DVA) has been quiet of late. Its last deal announcements came in 2017, as it acquired Purity Dialysis, a 10-center clinic operator in metro Milwaukee, and Polish dialysis provider Centrum Dializa II.
Back in 2015, U.S. Renal Care acquired DSI Renal, the Nashville, Tennesse-based operator with 100 facilities in 22 states. DSI was owned by Frazier Healthcare and New Enterprise Associates, both of which stuck around waiting for bigger stakes.
It remains to be seen what Bain, Summit and Revelstoke do with the company, but given their track record it could involve taking American Renal Associates (NYSE: ARA, market cap of $424.5 million) private. We’re just guessing.
