BC Partners set to buy Women’s Care Enterprises

The anticipated deal marks Lindsay Goldberg's second pending exit in healthcare services, as another portfolio company, Refresh Mental Health, recently selected Kelso as a suitor.

Europe’s BC Partners is the latest private equity firm to take a piece of North America’s growing women’s healthcare market, signing a deal to buy Lindsay Goldberg’s Women’s Care Enterprises, four sources told PE Hub.

The pending transaction is expected to value the Tampa, Florida, business at close to $900 million, two of the people said. 

For BC Partners, a pan-European buyout firm, the anticipated deal is its first North American healthcare platform investment in more than two-and-a-half years. In March 2018, BC Partners completed its purchase of Zest Dental Solutions, a maker of overdenture attachments, from Avista Capital Partners. 

The firm’s European healthcare portfolio totals six businesses today. 

For New York-based Lindsay Goldberg, the deal comes amid the pending exit of another healthcare services business. Lindsay Goldberg recently signed a deal to sell Refresh Mental Health to Kelso & Co at a value of around $700 million, PE Hub wrote.

Jefferies provided sell-side financial advice on both the Women’s Care and Refresh transactions, concluding an active year of advisory work in retail healthcare. The firm in 2020 also advised on the sales of Canada’s largest vet services company, Vet Strategy; the country’s largest outpatient mental health provider LifeStance Health; and dental implant provider ClearChoice.  

Lindsay Goldberg’s investment in Women’s Care Enterprises dates back three years, having bought the physician-owned company through Fund IV, a $3.5 billion vehicle, following a Hyde Park Capital-run auction. 

The platform, whose sale process originally kicked off around September, appears to have grown significantly under Lindsay Goldberg – executing on six add-on acquisitions since October 2017.

Women’s Care Enterprises is a multi-specialty women’s care platform and the management services provider for its partner businesses, which offer obstetrics, gynecology and fertility care, among other services. 

Sources previously placed the company’s EBITDA at approximately $85 million. 

Alistair Madle rejoined the company as CEO in July after holding the CEO post at Cressey & Co’s D4C Dental. Madle previously spent 14 years at Women’s Care Florida (WCE’s predecessor), serving as CFO, COO and CEO.

BC Partners’ entrance into women’s healthcare comes on the heels of Altas Partners’ bet in the sector. The Canadian long-life investor signed a $1.5 billion to $1.6 billion deal for Unified Women’s Healthcare in early November, sources with knowledge of the deal previously told PE Hub

Unified’s existing investor, Ares Management, whose original investment dates to January 2013, is set to remain a significant minority owner and plans to write a sizable new equity check, sources said at the time. Moelis and Barclays provided sell-side financial advice on the deal. 

As the women’s healthcare industry continues to benefit from a host of tailwinds, sources say another notable player to watch is Axia Women’s Health, a portfolio company of Audax Private Equity dating to early 2017.

Broadly speaking, the industry is viewed as having multiple avenues for future growth. Sources have characterized women’s health as a long-term play on both primary care and value-based care – both of which are thriving through the crisis, underscored by the performance of new age primary care businesses that have joined the public markets. 

As women’s healthcare remains a large and highly fragmented market where there are real benefits to scale, more private equity investment and consolidation is poised to follow. 

Lindsay Goldberg declined to comment. BC Partners, Women’s Care Enterprises and Jefferies did not return PE Hub‘s requests for comment.