Seacoast Capital has exited its investment in Righttime Medical Care, an operator of urgent care centers. The exit was a result of MedStar Health’s acquisition of Righttime. No financial terms were disclosed.
January 20, 2021– San Francisco, California. Seacoast Capital (“Seacoast”), a lower middle market non-control growth capital investor, announced today its exit from its investment in Righttime Medical Care (“Righttime” or “the Company”). Over the term of Seacoast’s investment, the Company increased revenue 16% and EBITDA 157%. Righttime, an operator of 19 urgent care centers, including the HeadFirst clinics for sports injury and concussion care, was acquired by strategic buyer MedStar Health, effectively doubling the size of their urgent care operation.
Righttime, founded in 1989 by Doctor Robert Graw—a practicing pediatrician with decades of clinical experience—was originally started to provide parents of sick children a place to go for medical treatment after-hours and on weekends. The Company also pioneered the concept of pediatric urgent care.
In 2015, Seacoast led a $14MM investment, comprised of subordinated debt with warrants and preferred stock in Righttime to help de-lever its balance sheet, buy out a few early shareholders, and provide capital for growth. Seacoast also helped to create an equity ownership plan for Righttime’s management team, leaving this accomplished group with ownership in the business for the first time.
“Our investment in Righttime could not have gone better,” said David Romagnoli, a Vice President at Seacoast. “It is a sterling example of the compounding benefits of combining a strong business with a capable and passionate management team, with an experienced, consultative institutional investor. Through our partnership, Seacoast acted both as a resource and an advocate for the business. Dr. Graw and his team worked hard every day to improve and grow Righttime while evolving with the needs of the marketplace. They showed aggressive commitment in protecting their patients and employees alike during the challenging times of this pandemic while increasing availability of services. We wish Dr. Graw and Righttime all the best as part of MedStar Health.”
“Overtime, they became not only trusted partners but friends. Even though Seacoast will no longer be invested in Righttime, we will undoubtedly stay in touch and keep tabs on each other,” said Dr. Graw. He added, “Seacoast gave Righttime executives and leadership a chance to meet outstanding advisors and partners for our development and future growth. Righttime has been known and recognized for practicing real medicine with a patient conscience and found an integration with MedStar Health a good fit for our employees and wonderful opportunities for care of our patients.
About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-control growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $25 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, refinancings, acquisitions, family wealth and ownership transfers, shareholder liquidity events, and partnership or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 80 non-controlling transactions. Now managing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com or https://www.linkedin.com/company/seacoast-capital/.