ABRY Partners to buy majority stake in Dallas-based Dermatology Associates

Private equity firm ABRY Partners agreed to acquire a majority interest in Dallas-based Oliver Street Dermatology Holdings LLC, which does business as Dermatology Associates. This is ABRY’s third investment in a healthcare practice management company, following FastMed Urgent Care and North American Dental Group, LLC. News of the deal was first reported by Buyouts Insider earlier this week.

Press Release

ABRY Partners (“ABRY”), a leading private equity firm, announced that it has entered into a definitive agreement to acquire a majority interest in Oliver Street Dermatology Holdings LLC (d.b.a. Dermatology Associates), one of the largest dermatology practice management organizations in the U.S. and the largest network in Texas,Kansas and Missouri. The transaction is expected to close in the second quarter.

Headquartered in Dallas, Texas, Dermatology Associates provides comprehensive practice management services to 60 board-certified dermatologists in 42 clinics across Texas, Kansas and Missouri. The Company’s providers offer a full suite of clinical, surgical and cosmetic service offerings, treating conditions like acne, psoriasis, dermatitis, and eczema and providing specialized, highly-effective treatments for a variety of skin cancers. Dermatology Associates is focused solely on providing outstanding care to its patients, leveraging the benefits of a broad, group platform and allowing physicians to focus exclusively on caring for patients. The group’s full-service delivery model provides high-quality care to over 320,000 patient visits annually through its dense network of conveniently-located facilities.

Glenn Goldstein, MD, a regional medical director at Dermatology Associates, said about the Company “As a physician, running a practice took time away from being available to my patients. Our physicians are passionate experts in providing medical care, we are not interested or qualified to navigate the insurance, regulatory and business issues that increasingly take more and more of our time. The complexities of a physician practice continue to create new challenges and the best option is to join with other like-minded organizations that possess the expertise needed to succeed through the uncertainties of the future. I am excited about working with Dermatology Associates to build an organization that is focused on dermatology yet retains its independence.”

Geoff Wayne, Chief Executive Officer of Dermatology Associates, said “Partnering with ABRY provides us with additional experience growing multi-site healthcare services business and the added resources and capital needed to accelerate our growth strategy and significantly expand our geographic footprint. We look forward to working with ABRY to support the Company in its next phase of growth.”

Brent Stone, a Partner at ABRY, said “We are excited to be partnering with Geoff Wayne and the Dermatology Associates team. Our partnership is based on a shared vision, and we look forward to providing both the capital and strategic and operational value to support Dermatology Associates as it continues to expand the platform and extends care to a broader patient base.”

The investment in Dermatology Associates represents the latest platform in the continuation of ABRY’s healthcare investment strategy and is its third investment in the healthcare practice management industry, following previous investments in FastMed Urgent Care and North American Dental Group, LLC (f.k.a. Refresh Dental Holdings).

Houlihan Lokey acted as exclusive financial advisor and Choate, Hall & Stewart served as legal advisor to Dermatology Associates, while Latham & Watkins represented ABRY Partners.

About ABRY Partners:

Founded in 1989, ABRY Partners is one of the most experienced and successful media, communications, business and information services focused private equity investment firms in North America.  Since its founding, ABRY has completed over$42 billion of transactions, representing investments in over 450 properties.  The firm is currently managing over $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, $950 million senior equity fund and a $1.5 billion senior debt fund.

About Dermatology Associates:

Headquartered in Dallas, TX, Dermatology Associates (DA) is the leading provider of dermatological services in Texas, Kansas and Missouri.  The company has developed a model which enables physicians to focus their time on patient care, while the business aspects of a practice are handled by its team of experts.  DA began with 8 physicians and 4 locations in 2013 and currently has partnered with 60 physicians to provide dermatology services across 42 locations.