Retina Consultants of America Formed through PE-Backed Merger
And in one fell swoop, Webster Equity Partners has formed a major physician group. The private equity firm announced in early March that it is acquiring and merging Retina Consultants of Houston, Retina Group of Florida, Long Island Vitreoretinal Consultants, and Retinal Consultants Serving Northern California to form Retina Consultants of America (RCA). The platform has a $350 million investment to build on and will have EBITDA of $80 million and roughly 50 physicians, according to sources cited in PEHub. But tucked away in that price is a fifth transaction that we should hear about before the end of March. Further, Webster and RCA are planning to expand rapidly, adding more practices in... Read More »Citadel Group Goes International
The Citadel Group Limited (ASX: CGL), an Australia-based business services company, announced this month it was acquiring Wellbeing Software for roughly $134 million, or 6.2x the group’s 2019 revenue of $21.6 million. Elysian Capital is selling the eHealth firm, which provides radiology and maternity software that manage patient workflow and data, as well as electronic health record management and data management solutions. The company’s platform, which includes Healthcare Software Systems, Euroking and Apollo Medical Systems, is used by more than 80% of NHS organizations. This merger will support Wellbeing Software’s international market expansion and compliment... Read More »
PE Firm Activity 2019 Results
Bain & Company’s recent Global Private Equity Report 2020 highlighted some slowdowns in investments across the board, writing that global buyouts from private equity (PE) firms dropped to 13% of M&A deal value in 2019, compared with 15% in the previous two years. A survey cited in the report stated that 57% of PE fund general partners interviewed think the economy has reached a cyclical peak, while 14% think it has already entered a recession. However, in the healthcare services industry, PE firms and their portfolio companies are more bullish, confident against signs of a recession and chatter about “Medicare for All” in the Democratic presidential primaries. * =... Read More »
Cimarron Healthcare Enters Behavioral Health Space
Two private equity firms exited an investment and one dove into it. The target, Ascent Behavioral Health, is a portfolio company of Monroe Capital and Veronis Suhler Stevenson. The Salt Lake City-based company provides wilderness therapy, residential treatment and therapeutic boarding school programs for adolescents with mental health issues such as depression, anxiety and attachment disorders. Financial terms were not disclosed. The buyer, Cimarron Healthcare Capital, which is also based in Salt Lake City, focuses on investments in the lower middle market. Its portfolio consists of AMPS (Advanced Medical Pricing Solutions), a healthcare cost management firm; Linen King, which provides... Read More »
PE-Backed Phoenix Rehabilitation Adds New Clinic
Phoenix Rehabilitation and Health Services Inc. has been on an acquisition spree since Audax Group acquired the group in December 2018. The rehabilitation firm has reported three deals since then, growing at a steady pace across the country. The partnership first reported a deal last September, acquiring Black Mountain Physical Therapy in Black Mountain, North Carolina. Black Mountain offers a range of treatment including skilled manual therapies, therapeutic exercises, and neuromuscular reeducation to treat biomechanical and structural problems. The clinic gave Phoenix a foothold in the North Carolina market. Just before the end of 2019, Phoenix acquired a physical therapy clinic in in... Read More »