Private Equity Firm FFL Partners has has signed a definitive agreement to sell EyeCare Partners (ECP), the largest medically focused and integrated eye care services provider in the US, to Partners Group Holding.
While financial terms of the deal were not disclosed, The Wall Street Journal, citing a person familiar with the deal, said the value of the deal is about $2.2 billion, including debt.
Partners Group, a global private markets investment manager with $91 billion in assets, will become a majority shareholder, while ECP’s management team and physician partners will continue to maintain an equity stake, according to an Partners Group news release.
The transaction is expected to close in the first quarter of 2020.
Founded in 2015 and headquartered in St. Louis, ECP provides eye care services from an integrated network of more than 500 optometrists and 85 ophthalmologists located in 13 states throughout the Midwest, Southeast, Mid-Atlantic and Southwest. Under FFL’s ownership, the company’s revenue grew at a compounded growth rate of 65 percent while expanding its geographic footprint from 63 to more than 450 sites of service through over 60 strategic acquisitions, according to an FFL news release.
“We are proud to have partnered with CEO Kelly McCrann and his talented team to create an exceptional network of independent primary care practices anchored by patient-centered doctors and ECP’s comprehensive suite of centralized business support services,” Chris Harris, Partner at FFL Partners, said in the news release. “This is a great outcome for our investors and our doctor shareholder partners.”
Following the investment, Partners Group said it will work closely with ECP’s management team on strategic initiatives to support ongoing organic and acquisitive growth. Key areas of focus for these initiatives will include: increasing the recruitment of high-quality ophthalmologists and optometrists; optimizing the network model; expanding and maximizing ambulatory surgical center utilization; enhancing administrative processes and operating efficiencies; investing in clinical technologies that enhance patient care; and pursuing select M&A partnership opportunities that provide world-class medical vision care and patient experience, according to a Partners Group news release.
“Partners Group has excellent operational support capabilities and an extremely successful track record of working with high-growth companies to build critical mass in the highly fragmented US healthcare sector,” Mr. McCrann said in the news release. “We are thrilled to have found a long-term partner that shares our patient- and physician-centric outlook. We are very excited to work with Partners Group to both strengthen ECP’s offering and expand our presence throughout the US.”