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.

• Cresso Health, backed by Cypress Ridge Capital, recently announced the acquisition of GPS Insurance. GPS Insurance is a Florida-based distributor of health insurance and related products. Cresso Health is a member acquisition and enrollment platform focused exclusively on the individual health plan market. Cresso Health will leverage the acquisition to enhance the company’s market presence and further establish itself as a leader in insurance distribution. Cypress Ridge Capital is a PE firm headquartered in New York, New York, specializing exclusively in health care investments.
• Accord Asset Partners, in partnership with Paras Capital, recently announced the acquisition of WestStar Physical Therapy Network. WestStar Physical Therapy Network, based in Southern California, specializes in providing physical therapy services for patients dealing with workers’ compensation and automobile injuries. This acquisition will allow WestStar Physical Therapy Network to expand its operations throughout the region and into new states. Accord Asset Partners is a PE firm headquartered in San Diego, California, primarily investing in the health care sector. Paras Capital is a PE firm headquartered in Boston, Massachusetts, and is also focused largely on health care investments.
• CareCentrix recently announced that it will operate as a private, standalone company following its acquisition by Sycamore Partners. CareCentrix specializes in providing in-home care solutions to payors and employers, ensuring that their members and employees receive timely and appropriate home care. Sycamore Partners is a PE firm based in New York, New York. The firm focuses its investments in consumer goods, distribution and retail, with roughly $11 billion in committed capital since opening in 2011. Sycamore Partners collaborates with management teams across the United States to enhance the operating profitability and strategic value of their businesses.
• OrthoNOW recently announced a partnership with Redwood Growth Partners. The partnership aims to accelerate the growth of OrthoNOW by targeting additional clinic acquisitions and establishing itself as a statewide provider of orthopedic pain and injury care. Founded in 2011 by orthopedic surgeon Dr. Alejandro Badia, OrthoNow is an orthopedic urgent care network based in South Florida. OrthoNOW currently operates clinics in Doral and on Biscayne Boulevard, with plans to open a new location in the South Miami region. Redwood Growth Partners specializes in partnering with middle-market outpatient providers to achieve sustainable growth that exceeds market averages.

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