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CityMD Urgent Care goes on the block: sources

CityMD Urgent Care is up for sale, according to six sources.

JPMorgan Chase is advising on the process, which is expected to attract private equity firms, the people said.

Warburg Pincus, KKR and UnitedHealth Group are interested in CityMD, two sources said. Other PE firms that may be interested in CityMD include TA Associates, Advent International, Bain Capital and General Atlantic. UPDATE: Advent is no longer involved, a separate source said.

The process began in January and is still in the early stages, people said. How much CityMD is seeking is unclear, but the company could fetch more than $300 million, a third source said.

Four emergency-room doctors formed CityMD in 2010 as an alternative to primary-care physicians, the website said. CityMD, New York, offers walk-in medical services for customers. It has more than 60 locations in New York, New Jersey and Washington.

Summit Partners, a growth equity firm, invested $95 million in CityMD in January 2014, according to a Provident Healthcare Partners PE industry update from that time. Summit’s website does not list CityMD as a portfolio company. The growth equity firm has chosen not to publicize its investment, the third source said.

The urgent-care space has attracted PE and strategic interest. In 2014, TPG Growth invested in Access Clinical Partners, which does business as GoHealth Urgent Care.

Revelstoke Partners in August acquired Fast Pace Urgent Care from Shore Capital Partners. Optum, backed by UnitedHealth, owns MedExpress. Bain Capital Ventures sold Minute Clinic to CVS in 2006.

CityMD, Summit, KKR and JP Morgan could not be reached for comment. Warburg and General Atlantic declined comment.

Action Item: Contact CityMD CEO Dr. Richard Park: +1 212-913-0828

Sam Sutton contributed to this report.

The CityMD branch at 561 Third Avenue in Manhattan on Feb. 22, 2017. Photo by Buyouts Staff.