Gastro Health LLC, a portfolio company of OMERS Private Equity and Audax Private Equity, announced on June 13 that it acquired Digestive Disorders Associates for an undisclosed price. The acquisition marks Gastro Health’s fifth transaction in 2022.
Digestive Disorders Associates operates three offices in Annapolis, Chester and Gambrills, Maryland, with 10 physicians. The physicians perform procedures at Maryland Diagnostic and Therapeutic Endo Center. The practice also manages anesthesia, pathology and infusion treatment services.
Gastro Health is a medical group specializing in the treatment of gastrointestinal disorders, nutrition and digestive health. It operates in Florida, Alabama, Washington, Virginia, Ohio and Maryland, with more than 145 locations and 370 physicians consisting of medical office practices, infusion centers, imaging services and one specialty pharmacy. Additionally, Gastro Health owns and operates endoscopy centers and provides pathology and anesthesia services.
Waller Law served as legal advisor to Gastro Health and Westcove Partners served as the exclusive financial advisor to Digestive Disorders Associates. The acquisition is scheduled to close on July 1.
According to the LevinPro database, this is the 241st Physician Medical Group (PMG) acquisition of the year, a nearly 22% increase from the same period in 2021 when 198 deals were reported. Of the 241 PMG deals reported this year, 17 were gastroenterology deals, which is a 29% decrease from the same period in 2021 that saw 24 gastroenterology acquisitions. Private equity has had a large presence in PMGs as 16 of the 17 deals were done by private equity firms and their portfolio companies. The most active is GI Alliance which has made six acquisitions in 2022.
