Boston’s Summit Partners earlier this year invested in Pediatric Associates, Florida’s largest privately-owned primary care pediatric practice group, three sources with knowledge of the matter told Buyouts.
The transaction was done outside of a formal process with no sell-side adviser engaged, one of the people said.
While the structure of the transaction is unclear, the growth equity firm’s deal valued Pediatric Associates at around 10x Ebitda, which lies in the mid-$20 million to $30 million range, the sources said.
Formed as a single clinic in Hollywood, Florida, in 1955, Pediatric Associates has since expanded throughout Broward, Miami-Dade, Palm Beach and St. Lucie counties, as well as in Tampa and Jacksonville.
Pediatric Associates encompasses more than 200 physicians and 32 offices, offering comprehensive primary care services to children and families. On-site services include X-ray and state-certified laboratories in most locations, as well as free support groups, chronic disease management assistance, educational and safety classes and events.
Peter Shulman is CEO of Pediatric Associates, while Claude Chevance holds the CFO post.
Chevance—who joined Pediatric Associates in March, according to the provider’s website—previously served Summit Partners as CFO of Highland Acquisition Holdings, the parent company of HealthSun.
Summit sold HealthSun, a South Florida Medicare Advantage health plan and medical center network, to Anthem in September 2017.
In other investment activity in pediatric care, Varsity Healthcare Partners in April completed a growth equity investment in Angels of Care, which provides home health services to pediatric patients with medical conditions. Elsewhere, InTandem Capital Partners in December invested in Pediatric Home Service.
Other notable PE-backed players include industry giant Aveanna Healthcare, which in addition to pediatric care offers autism treatment and adult services.
Aveanna, jointly owned by Bain Capital and J.H. Whitney, bought the home health business of Maxim Healthcare Services earlier this year.
Summit Partners didn’t return requests for comment, while Pediatric Associates executives couldn’t immediately be reached.
Action Item: Check out Summit’s latest Form ADV: https://bit.ly/2MfKwZl