Enhanced Healthcare Partners sells West Dermatology to Sun Capital Partners
Enhanced Healthcare Partners (EHP), a New York-based private equity firm focused on investing in middle-market healthcare businesses, has exited its platform investment in West Dermatology through the sale of the business to Sun Capital Partners, Inc.
West Dermatology is the largest and most sophisticated provider of dermatology services in the Western US. The company's mission statement, "Healthy Skin Is Our Passion," underscores its focus on quality care and patient satisfaction. The company has a 55-year operating history and partnered with EHP in November 2014 to drive forward a growth strategy founded on collaborating with top physicians with a shared commitment to clinical excellence.
“EHP helped drive alignment that kept leadership clear on our execution model and created strategic momentum for the business,” says Chris Kane, Chief Executive Officer of West Dermatology. “They also provided an essential architecture for growth and a strategic vision that was fundamental to building our platform. It has been a pleasure working with the team at EHP and their depth of knowledge in the healthcare services space was invaluable as we executed on our growth plans.”
Over the course of EHP's ownership, West Dermatology doubled the number of its clinics, acquired 22 practices and completed numerous organic expansion initiatives. EHP was initially attracted to the sector given a rising patient need for skin-related care as well as a general lack of quality physician access in the targeted geographies.
“We had a strong game plan at the outset of our partnership. Chris, along with the senior members of our clinical team and management team, did an exceptional job executing on our strategy of building a regional leader in the sector,” says Samarth Chandra, General Partner at EHP. “We built an infrastructure that allowed physicians to focus on patient care, culture and quality that was sustainable as the business expanded and integrated other practices. We always viewed our organisational aptitude as central in our ability to drive the physician and patient experience.”
Dan Florian, Managing Director at Sun Capital, says: “West Dermatology is a true strategic platform that benefits from a carefully assembled portfolio of best-in-class providers, a strong management team prepared to execute an ambitious growth strategy, great strategic payor relationships, and a deep bench of dermatologists recognszed as clinical thought leaders. We are excited to support West’s execution of its disciplined growth strategy and further build on the company’s legacy of excellence.”
Terms of the transaction have not been disclosed. Jefferies LLC served as exclusive financial advisor to West Dermatology through its Global Retail Healthcare franchise.