Private Equity Deal Spotlight | Weekly Update

Health care continues to drive private equity (“PE”) activity, creating opportunities for investors and traditional health care providers. Transactions in the health care space are especially complicated, layering health care regulatory and reimbursement considerations on top of a complex securities, antitrust, privacy and security framework.

Hall Render’s PE team of attorneys and advisors leverage the strength and depth of our bench to navigate and efficiently execute PE transactions. The summary below includes highlights of recent PE deals and legislative updates.

• Beecken Petty O’Keefe & Company, LLC (“BPOC”) announced the sale of Health-E Commerce, a retailer of flexible spending account and health savings account eligible products and telehealth services to H.I.G. Capital. BPOC initially partnered with Health E-Commerce in 2019 to support a period of significant investment and growth. BPOC is a Chicago-based PE firm with over $2.2B in capital commitments that invests exclusively in providers, manufacturing, outsourcing, distribution and information technology middle-market health care companies. H.I.G. Capital is based in Miami and operates private equity, debt, real estate and infrastructure funds with investments across a broad range of industries throughout the U.S., Europe and Latin America.
• TPG announced a strategic growth investment in K2 Medical Research, which provides integrated clinical trial site platform services specializing in central nervous system trials for pharmaceutical and biotechnology sponsors. The investment is intended to support K2’s growth strategy and enhance its capabilities in mobile research, patient recruitment and technology integration. TPG is an international alternative asset management firm headquartered in San Francisco, focused on growth capital, venture capital, public equity and debt investments.
• Pinnacle Clinical Research, a LongueVue Capital portfolio company specializing in clinical trials for complex therapeutic areas, has completed investments in five new site locations including Kerwin Medical Center, The Cognitive and Research Center of New Jersey, Bellaire Clinical Research, Palmetto Clinical Research – Low Country and Dallas Research Institute. These additions to Pinnacle’s network are expected to expand both the company’s geographic footprint and therapeutic area expertise. LongueVue Capital is a PE firm located in New Orleans with investments in a wide array of middle-market companies including health care, business and industrial services, and food and beverage.
• Medical Specialists of the Palm Beaches (“MSPB”), a physician group practice backed by Ascend Capital Partners and CareAbout Health, announced the acquisition of Family Medical Center, a physician practice headquartered in Palm Beach Gardens, FL. The transaction marks MSPB’s first acquisition in Palm Beach Gardens and its sixth acquisition since Ascend Capital Partners and CareAbout Health invested in the company. Ascend Capital Partners is a PE firm that invests in companies that seek to improve health care access, affordability and quality. CareAbout Health provides management, resources, value-add services and technology to its portfolio of medical groups and health care-focused companies.
• Riverpoint Medical, an Arlington Capital Partners-backed developer and manufacturer of medical devices, closed its acquisition of CP Medical Corporation, a device manufacturer focused on specialty surgical applications and wound closure products. The acquisition is intended to strengthen Riverpoint Medical’s position in the surgical and animal markets by leveraging CP Medical’s current network and expanding CP Medical’s product offerings. Arlington Capital Partners is a Washington, D.C.-based private investment firm specializing in health care, government services, technology and defense businesses.
• DermCare Management LLC, a Hildred Capital Management portfolio company, announced the acquisition of Absolute Aesthetics Rejuvenation and Laser Center, a Florida-based company offering a wide range of aesthetic services such as dermal fillers, neurotoxin injections and laser treatments. The acquisition accelerates DermCare Management’s growth as it expands to managing 150 providers across more than 70 locations. Hildred Capital Management is a New York-based PE firm focused on middle-market companies within the health care industry.
• H.I.G. Growth Partners completed the acquisition of Mobile Health Consumer, Inc., an end-to-end digital health, wellness and virtual care software as a service platform. The acquisition serves Mobile Health Consumer’s goal of reducing health care costs for employers and increasing employee engagement. H.I.G. is a growth capital investment affiliate of H.I.G. Capital that invests in technology, health care, internet and media, consumer products and technology-enabled financial and business services sectors.