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ABRY Partners to buy Dermatology Associates of Tyler: source

Candescent Partners is selling Dermatology Associates of Tyler to ABRY Partners, according to a source familiar with the transaction.

Houlihan Lokey is advising on the auction of the Tyler, Texas, skin-care-services provider.

Valuation for the deal was unclear. Candescent Partners was seeking bids in the “double digit” range for Dermatology Associates, sources said.

Candescent put Dermatology Associates up for sale earlier this year, the source said. “It will likely be double digits,” a different source said.

Founded in 1996, Dermatology Associates offers skin care as well as science-based therapies and treatments. The company treats conditions like acne, psoriasis, dermatitis and eczema as well as a variety of skin cancers, according to the company’s website.

In May 2014, Dermatology Associates acquired Dermatology & Skin Cancer Center of Kansas City, Missouri.

News of the deal first appeared on the Federal Trade Commission website on May 13. ABRY is buying Oliver Street Dermatology, the FTC notice said. Oliver Street is the holding company for Dermatology Associates of Tyler and Dermatology & Skin Cancer Center.

In 2015, Oliver Street secured nearly $13.4 million in equity and debt financing, which was on top of $57.6 million the company collected in 2014, the Boston Business Journal reported in February 2015

Candescent Partners acquired Dermatology Associates of Tyler in January 2013. Financial terms weren’t disclosed. Eagle Private Capital and Harbert Mezzanine Partners co-invested in the deal.

Boston-based Candescent invests in lower-middle-market companies with annual EBITDA of $2 million to $8 million. Sectors include healthcare services, business services, software and consumer products, the Candescent website said.

Executives for Candescent Partners and Houlihan declined comment. ABRY, Dermatology Associates, Harbert Management and Eagle Private Capital could not immediately be reached for comment.

Action Item: To contact Dermatology Associates of Tyler: +1 903-534-6200

Photo ©iStock/AndreyPopov