Since 2017, Miami Beach Medical Group has been backed by Texas-based private equity firm Gauge Capital, LLC, and the partnership seems to have been successful. Based on search results in our Healthcare Deal Database, the physician group hasn’t acquired any new practices to expand its footprint, but under Gauge Capital’s ownership, the practice’s EBITDA grew from $15 million in 2016 to an estimated $40 million in 2020. And now, Gauge Capital is exiting its investment, and selling Miami Beach Medical to Sun Capital Partners, Inc., a Florida-based private equity firm. The deal is valued at approximately $500 million, according to sources cited at PE Hub.
Miami Beach Medical is the second-largest independent provider of capitated primary care services to Medicare Advantage plan members in South Florida, with a network of 19 medical centers across four counties. The company has contracted relationships with 10 health plans and operates a management services organization with 74 independent physicians serving more than 1,750 Medicare Advantage patients in the area. Sun Capital will leverage its healthcare expertise to help the practice grow its market presence and footprint.
Sun Capital has announced two transactions prior to its investment in Miami Beach Medical. In February, the PE firm bought California-based West Dermatology, a practice management group focused on clinical research, medical dermatology services and cosmetic dermatology, from Enhanced Healthcare Partners. No terms were disclosed, but so far West Dermatology is Sun Capital’s only dermatology practice in its portfolio.
In February 2019, Sun Capital added Simply Beautiful Smiles, a dental service organization that provides general dentistry, hygiene, and specialty services. No terms were disclosed.