New York-based private equity firm Harvest Partners, LP and Audax Private Equity completed a recapitalization of Advanced Dermatology & Cosmetic Surgery, a nationwide practice management company headquartered in Maitland, Florida. Audax, the previous investor, and the company’s management team will retain minority stakes. Terms of the deal were not disclosed.
Harvest Partners, LP (“Harvest”), a New York-based private equity firm, and Audax Private Equity (“Audax”) announced today they have completed a recapitalization of Advanced Dermatology & Cosmetic Surgery (“Advanced Dermatology,” “ADCS,” or the “Company”). Audax, the Company’s previous sponsor, will retain a minority stake, as will the Company’s management team. Terms of the transaction were not disclosed.
Advanced Dermatology, headquartered in Maitland, FL, is the largest dermatology practice in the country, with over 140 locations. Founded in 1989, the Company offers a full range of dermatologic care including clinical, medical and cosmetic dermatology.
Advanced Dermatology CEO Dr. Matt Leavitt and President and COO David Morell will continue to lead the Company. Dr. Leavitt, an internationally recognized researcher, surgeon and author, is a Board-certified dermatologist specializing in skin cancer, cosmetic surgery and general dermatology.
Dr. Leavitt said, “Audax has been a terrific partner. Their experience sourcing and integrating add-on acquisitions along with their operational expertise were key assets as we expanded ADCS into new geographies and expanded in our existing markets. I am excited to work with Harvest as we look to grow Advanced Dermatology. Harvest’s operating expertise and financial resources will allow us to focus on attracting the best physicians as we expand our network and continue our tradition of providing a superior patient experience.”
“Given the Company’s success, Matt Leavitt and Audax had their choice of private equity firms with whom to partner. We are both thrilled and honored that they chose Harvest for Advanced Dermatology’s next chapter of growth,” said Jay Wilkins, Senior Managing Director at Harvest Partners.
“Advanced Dermatology is the leader among few scale platforms in the highly attractive and fragmented dermatology space. We are excited to partner with Matt and his team to support the Company’s consolidation strategy in this stable and growing market,” added Paige Daly, Managing Director at Harvest Partners.
“We’ve enjoyed a terrific partnership with Matt and his team over the past five years, having built the business into a quality-focused platform in a consolidating space. Harvest provides great insight and expertise in multi-site businesses, and we are excited to partner with them to support the continued growth of Advanced Dermatology,” said Keith Palumbo, Managing Director at Audax.
Jefferies LLC served as the exclusive financial advisor to Advanced Dermatology and Audax. Ropes & Gray LLP advised ADCS and Audax in the transaction. White & Case were legal advisors to Harvest. Financing for the transaction was provided by Golub Capital and Crescent Capital Group.
About Advanced Dermatology
Advanced Dermatology & Cosmetic Surgery (www.advancedderm.com) is a dermatology-focused physician practice management company, with clinics around the United States which provide clinical, cosmetic, and pathology services. Advanced Dermatology also provides billing and coding services for third-party dermatology practices under the Ameriderm trade name.
About Harvest Partners
Founded in 1981, Harvest Partners, LP (www.harvestpartners.com) is a leading New York-based private equity investment firm pursuing management buyouts and recapitalizations of middle market companies in North America. Harvest focuses on acquiring profitable companies in the healthcare services, business services and consumer, industrial and energy services, and manufacturing and distribution sectors.
About Audax Private Equity
Since its founding in 1999, Audax Private Equity has been focused on building leading middle market companies. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. Audax Private Equity is an integral part of Audax Group, an alternative asset management firm specializing in investments in middle market companies. With offices in Boston, New York, and Menlo Park, Audax Group has over $10 billion in assets under management across its Private Equity, Mezzanine, and Senior Debt businesses. For more information, visit the Audax Group website at www.audaxgroup.com.