Anne Arundel Dermatology Management (ADM) has been an active buyer in the healthcare M&A space for the past few years. Backed by private equity firm New MainStream Capital (NMS), the physician practice group has announced 10 acquisitions since January 2018, according to search results in our HealthCareMandA.com Deal Database. The pair announced several additions in 2019 alone.
Anne Arundel Dermatology provides dermatological services in Maryland, Virginia, Tennessee, North Carolina and Pennsylvania. The practice has 74 locations and 181 providers and offers a comprehensive suite of dermatologic services, offering general dermatology, advanced treatment options for skin cancer and cosmetic procedures.
But now that partnership between NMS and ADM has ended. The private equity firm has sold Anne Arundel Dermatology to Ridgemont Equity Partners, another firm that specializes in middle-market buyout and growth equity investments. No financial terms were disclosed.
The management team at Anne Arundel Dermatology and physician-owners invested alongside Ridgemont in the transaction. Financing was provided by Twin Brook Capital Partners, Crescent Direct Lending, First Eagle Alternative Credit, Pathway Capital Management, Northwestern Mutual Investment Management Company and funds and accounts sub-advised by Churchill Asset Management.
This deal is a first purchase in the Physician Medical Group sector for Ridgemont Equity Partners. The firm typically invests in the behavioral health care market through its portfolio company, Perimeter Healthcare. With a physician group the size of ADM now in their portfolio, Ridgemont Equity already has a substantial market reach. That’s not a bad start at all.
