Long Island’s SightMD nears sale to Chicago Pacific Founders

  •  SightMD has 24 locations in Long Island and New York
  • Sell-side adviser: Cross Keys
  • Ophthalmology company is official LASIK provider of the New York Mets

SightMD, the Long Island, New York, provider of vision-care, is close to sealing a deal with Chicago Pacific Founders, three sources told Buyouts.

The proposed transaction for the ophthalmology group is expected to produce a valuation just south of $150 million, representing a multiple of Ebitda approaching 12x, one of the sources said.

Cross Keys is providing financial advice to SightMD, the sources said.

SightMD was formed in 2016 through the fusion of North Shore Eye Care, a laser eye surgery group, and Long Island Eye Surgical Care, another ophthalmology treatment provider.

Today the combined company spans 24 locations throughout the greater Long Island and New York metropolitan area, with more than 50 physicians.

SightMD treatment services include Lasik, cataract surgery, glaucoma management, retinal care and oculoplastic surgery, among other things.

The eye-care provider is also the official Lasik provider of the New York Mets, according to its website.

Jeffrey Martin, MD, holds the CEO post at SightMD, while John Passarelli, MD, serves as president.

In other pending vision-care activity, New Jersey’s NJRetina tapped William Blair earlier this year to advise on a sponsor-focused process. The doctor-owned group represents the first group specializing in retina surgeries to conduct a formal auction.

Other recent financial buyers to invest in the vertical include Revelstoke Capital Partners, which in May launched CEI Vision Partners through its deal for Cincinnati Eye Institute.

Also in May, Firmament Group (formerly McLarty Capital Partners), partnered with more than 30 specialists to form Vision Integrated Partners.

Gauge Capital backed newly formed vision-care provider Comprehensive Eye Care, or CompEye, in February, following a Brentwood Capital Advisors-run process.

In other notable activity, Varsity Healthcare Partners in May 2017 sold a majority stake in EyeCare Services Partners to Harvest Partners.

ESP was said to have commanded a mid-teen multiple of its at least $22 million in projected run-rate Ebitda, implying a valuation around $330 million.

H.I.G. Capital in April 2017 bought SouthWestern Eye and Barnet Dulaney Perkins, the former of which was advised by Intrepid Investment Bankers. The combined entity that now goes by American Vision Partners announced this week an add-on deal for Miles Eye Center.

Chicago Pacific Founders closed its inaugural fund in July 2016, collecting an oversubscribed $325 million. The Chicago shop invests in middle-market healthcare services companies in the U.S. and Canada.

Typical equity commitments are as high as $75 million; however, the sponsor has access to co-investment funds for larger investments, its website states.

The firm was founded in 2014 by Co-Managing Partners Mary Tolan, Larry Leisure and Vance Vanier.

Representatives of CPF and SightMD didn’t immediately return requests for comment, while those with Cross Key declined comment.

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