Recent Physician Practice M&A News

By: Michael White

Our team keeps track of press releases and competitive intelligence we come across in the specialty physician practice space.  As you can see, there continues to be significant interest from private equity and private equity-backed platforms across specialties. Founders welcomes the opportunity to answer any questions you may have relating to practice valuation and short- and long-term strategic options. 

Recent Specialty Physician Practice Mergers and Acquisitions News

March 1, 2019 – West Dermatology Group, a private equity-backed chain of high-end clinics operating in Southern California, Nevada and Arizona, has hired an investment bank to explore a potential sale. West Dermatology was acquired by Enhanced Healthcare Partners in 2014 and operates three dozen dermatology centers generating ~$20 million in EBITDA. 

March 13, 2019 – Dr. Dental Management, a Framingham, Massachusetts-based dental management services organization, has received an investment from Boston-based private equity firm Abry Partners. Dr. Dental is one of the largest dental management service organizations in New England, with 100 active dentists treating over 250,000 patients a year. Dr. Dental will use the capital infusion to expand organically by opening new locations as well as targeting strategic acquisitions of dental practices and groups throughout the Northeast.

March 19, 2019 – Peak Gastroenterology Associates, based in Colorado Springs, Colorado, has engaged an investment bank to explore a sale. Peak Gastro operates seven gastroenterology clinics and 12 endoscopy centers in Colorado and employs 20 physicians.

March 21, 2019 – Digestive Health Associates of Texas, a privately-held gastroenterology practice based in Dallas, Texas, is exploring a sale. The practice generates ~$10 million in EBITDA and employs 80 physicians across 40 locations. 

Gastroenterology has seen an uptick in M&A activity in recent months as financial sponsors pour into GI assets given the positive reimbursement environment and opportunities for diverse revenue streams. In November 2018, Texas Digestive Disease Consultants (“TDDC”) was acquired by Waud Capital to create The GI Alliance. TDCC was reported to have had more than $20 million in EBITDA and over 160 physicians, making it one of the largest GI assets in the market. Atlanta Gastroenterology Associates was acquired by Frazier Healthcare Partners to form United Digestive in January 2019.

March 25, 2019 – Private equity-backed Schweiger Dermatology Group announced that they have completed the acquisition of Dermatology & Skin Surgery Center, with locations in Exton, Coatesville and Kennett Square, PA to expand their footprint in the Philadelphia region. 

March 26, 2019 – Pinnacle Dermatology, the Lombard, Illinois-based dermatology services company backed by Chicago Pacific Founders, has acquired Flint, Michigan-based Michigan Dermatology

March 27, 2019 – Schweiger Dermatology Group, a New York City-based provider of medical and cosmetic dermatology services whose backers include LLR Partners, acquired Exton, Pennsylvania-based Dermatology & Skin Surgery Center.

April 1, 2019 – Arizona Digestive Health (ADH), a privately held gastroenterology physician group has engaged an investment bank to pursue a sale. The process is set to launch in April. ADH has EBITDA of ~$5-10 million. ADH is owned by 52 medical professionals, including 49 gastroenterologists and three pathologists. The group has 26 locations through Phoenix and central Arizona, 11 affiliated endoscopy centers and an anatomic pathology laboratory. Using proceeds from a sale, ADH will focus on expansion West of the Rockies.

April 5, 2019 – Ovation Fertility, a Los Angeles-based operator of nine fertility centers and labs throughout the United States is considering a sale. Ovation is a platform of assistive reproductive technology (“ART”) laboratories that affiliate with physician fertility clinics across the US to provide patient care in reproductive medicine. Ovation has been a portfolio company of private equity investors since June 2015.

April 5, 2019 – East Valley Gastroenterology and Hepatology Associates has teamed up with Arizona Gastrointestinal Associates in a continuing sale process. East Valley was originally being marketed on a stand-alone basis but has recently joined with Arizona Gastro in a combined sales process. East Valley has eight physicians and nine locations throughout Arizona, while Phoenix-based Arizona Gastrointestinal Associates has 13 physicians and seven locations throughout the state. The practices are being marketed with ~$10 million in EBITDA. 

April 8, 2019 – Pinnacle Dermatology, a Lombard, Illinois-based dermatology services company is seeking to continue its expansion throughout the Midwest. Pinnacle currently has 28 locations and over 50 providers and aims to grow to ~50 sites with 95 providers on staff by year-end.

April 11, 2019 – Eye Health America, the Roswell, Georgia-based eye care practice management company that is backed by LLR Partners, has acquired Florence, South Carolina-based Carolinas Centers for Sight. Carolinas Centers for Sight employs seven physicians and operates in five offices in South Carolina.

April 15, 2019 – Ludwick Eye Center, a regional provider of medical-surgical eye care services with four locations in Pennsylvania and Maryland, has partnered with Omni Ophthalmic Management Consultants.  Omni Ophthalmic is a New Jersey based ophthalmic MSO backed by NMS Capital.  Omni represents 70 providers across 20 locations with combined revenues of ~$100 million.

May 2, 2019 – EyeSouth Partners, an Atlanta, Georgia based eye care services chain backed by Shore Capital Partners, has acquired Crossville, Tennessee-based Cumberland Eye Care and Plateau ASC and Cookeville, Tennessee-based Cookeville Eye Specialists and Perimeter ASC.  EyeSouth’s affiliate network consists of approximately 70 doctors providing medical and surgical eye care services at 45 locations throughout Georgia, North Carolina, Florida and Tennessee.  This represents EyeSouth’s first acquisition in Tennessee which will become an increasing focus for the company in the future.

May 2, 2019 – Water’s Edge Dermatology, a Florida-based provider of dermatology services, has acquired a controlling interest in PBC Dermatology, a West Palm Beach, Florida-based dermatology practice.  This transaction is the first acquisition for Water’s Edge since it was acquired by private equity firm Gryphon Investors in June 2018. The deal expands Water’s Edge’s service offerings in the Palm Beach area.  PBC Dermatology operates one location.  Water’s Edge has 35 locations and more than 400 employees.

May 2, 2019 – Anne Arundel Dermatology Management, a Linthicum Heights, Maryland-based provider of dermatological services backed by NMS Capital and Pantheon Ventures, bought Virginia Beach, Virginia-based Laser Skin & Vein Center of Virginia.  ADM now provides support services to 49 clinic locations across three states and over 125 providers.

May 7, 2019 – Pinnacle Dermatology, the Lombard, Illinois-based dermatology services company backed by Chicago Pacific Founders, has acquired Lapeer, Michigan-based Roberts Dermatology.  Roberts Dermatology provides skin care and dermatology services from its four office locations.  Additionally, Pinnacle acquired Okemos, Michigan-based Doctor’s Approach Dermatology & Med Spa on May 9.  Doctor’s Approach provides skin care and dermatology services from three locations.