Goldman PE arm buys MyEyeDr in $2.7B deal, producing 3.5x return for Altas Partners

  • Altas, CDPQ bought Vienna, VA, company for $775 mln in ’15
  • Sell-side adviser: Jefferies
  • FFL’s EyeCare Partners to weigh options via Moelis

Altas Partners is poised to generate an about 3.5x return on MyEyeDr through a sale of the optometry giant valued at $2.7 billion, according to a source familiar with the matter.

Goldman Sachs through West Street Capital Partners VII, a fund managed by its merchant banking division, agreed to acquire the well-known brand by buying its management services company, Capital Vision Services, a June 3 statement showed.

Terms weren’t disclosed.

Toronto’s Altas partnered with Caisse de dépôt et placement du Québec in August 2015 to acquire Capital Vision Services for $775 million, the source said. The initial investment was the result of proprietary discussions outside a formal sales process, the source added.

The pending acquisition — the largest sponsor-backed transaction in vision care history — concludes a Jefferies-run process that kicked off earlier this year.

MyEyeDr, Vienna, Virginia, was marketed off adjusted 2019 Ebitda of $160 million, sources previously told Buyouts. Based on a total EV of $2.7 billion, that suggests an Ebitda multiple of some 17x.

Led by Co-Founder and CEO Sue Downes, MyEyeDr operates a retail- and brand-oriented model and focuses exclusively on the optometry market. The platform includes optometry offices and eye-care storefronts across the Southeast, Mid-Atlantic, Northeast and Midwest, offering prescription glasses and frames as well as contact lenses and eye exams.

The company’s network is expected to total 575 practices spanning 18 states by year-end, up from 165 practices in seven states at the time of Altas and CDPQ’s 2015 investment, the June 3 statement said.

The conclusion of the MyEyeDr process comes as another PE-backed eye-care platform prepares to considers its options this year.

FFL Partners hired Moelis to advise on a process for EyeCare Partners, Buyouts previously reported.

EyeCare Partners differs from MyEyeDr in that it is an integrated platform consisting of both independent optometry and ophthalmology practices. In other words, EyeCare Partners locations also provide medical and surgical eye care via diagnosis and treatment of various eye diseases and conditions.

Action Item: Check out Altas Partners latest Form ADV: