High Road Capital Buys Advanced Sleep Medicine

High Road Capital Partners has acquired Advanced Sleep Medicine Services Inc., a Los Angeles-based provider of sleep disorder diagnostics and related durable medical equipment in Southern California. No pricing terms were disclosed. Fifth Third Bank provided debt financing.


High Road Capital Partners (www.highroadcap.com) has completed the fifth platform transaction for its debut fund, High Road Capital Partners Fund I, LP, with the acquisition of Advanced Sleep Medicine Services, Inc. (“ASMS”) (www.sleepdr.com). Based in Los Angeles, California, ASMS provides sleep disorder diagnostics and related durable medical equipment (DME) in Southern California.

“ASMS is the region’s leading sleep center operator and is well positioned to benefit from a growing awareness of sleep disorders and the increasing attention to treating them,” said Robert Fitzsimmons, High Road’s Managing Partner. “Nearly 20 million Americans suffer from Obstructive Sleep Apnea, an often life-threatening condition, and the vast majority go untreated. We look forward to working with management to expand the company’s leadership position in this still-nascent market.”

“ASMS is a nationally recognized provider, which has been demonstrated by its selection to provide diagnostic testing to contestants on the television program The Biggest Loser,” added Bill Connell, High Road’s lead partner on the transaction. “The company’s excellent leadership team has implemented an efficient operating model, with high service levels.”

Said Mostafavi, M.D., F.C.C.P., F.A.A.S.M, CEO and Medical Director of ASMS, and a significant investor in the acquisition said, “I am pleased to be partnering with High Road, as we look to continue to grow the business and keep ASMS, which I founded in 1994, in the forefront in the field of sleep medicine. Our continued success is due to our highly qualified and dedicated employees, who deliver the best quality sleep-related services and are attentive to the needs of the physician community.”

Senior debt financing for the transaction, which closed on May 21, 2010, was provided by Fifth Third Bank. Transaction consideration was not disclosed.

Also working on the transaction from High Road were Partner William Hobbs and Vice President Adi Blum.

For further information, please contact Bob Fitzsimmons of High Road Capital Partners at (212) 554-3265.

High Road Capital Partners
High Road Capital Partners is a private equity firm focused on smaller middle market transactions. High Road was formed in 2007 and currently manages over $150 million of committed capital. High Road focuses on niche-leading companies with revenues of $10 million to $100 million and EBITDA of $2 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level, with the expectation of doubling or tripling EBITDA during the course of its ownership through a combination of organic growth initiatives and add-on acquisitions. More information on High Road may be found on its website, www.highroadcap.com.