Brockway Moran scores more than 4x return with MD Now sale

  • Brockway Moran invested in MD Now in ’12 via Fund III
  • Florida PE firm left with three investments in final fund
  • Deal concludes Houlihan Lokey-run auction

Brockway Moran & Partners is making more than 4x its money through its sale of MD Now, a source said.

Middle-market PE shop Brentwood Associates acquired the South-Florida-concentrated urgent-care network, the private equity firms said Aug. 2.

The deal comes after Buyouts reported in May that a Houlihan Lokey-run auction was underway for MD Now. The process kicked off in late March, the source said.

Terms weren’t disclosed, but the process was expected to produce a deal valued at a teens multiple of Ebitda.

MD Now, led by CEO Michael Holton and based in West Palm Beach, Florida, generated trailing 12-month Ebitda of about $15 million, while mature Ebitda, which assumes maturity of clinics opened over the past few years, is around $20 million, sources said in May.

Sponsors viewed MD Now as a compelling opportunity for various reasons, including its strong regional density, sources said. A large Medicare Advantage population and opportunity to control hospital readmissions added further appeal.

Brockway Moran, Boca Raton, Florida, invested in MD Now in April 2012 through Fund III, alongside the provider’s founder, Peter Lamelas. Managing Partners Peter Brockway and Michael Moran and Partner Ari Zur served on the board.

The exit represents one of the firm’s last remaining investments out of its third and final fund. Its remaining portfolio includes Winebow Group, Turning Technologies and Pennant Foods.

For Los Angeles’s Brentwood, the deal brings its portfolio of healthcare investments to two. MD Now joins Jefferson Dental Care, the Dallas-based dental-support organization it scooped up in April 2017 for close to $200 million, sources told Buyouts at the time.

Financo offered advice to Brentwood on the transaction, while Kirkland & Ellis offered legal counsel. Peter W. Klein provided legal advice to MD Now.

Action Item: Reach out to Brentwood at +1 310-477-6611