Sun Capital agrees to acquire Miami Beach Medical Group

The Boca Raton, Florida PE firm buys the primary care provider from Gauge Capital.

Sun Capital Partners has signed an agreement to acquire Miami Beach Medical Group, provider of primary care, specialty care and ancillary services to Medicare Advantage plan members in South Florida. The seller is Gauge Capital. Financial terms were not disclosed.

PRESS RELEASE

BOCA RATON, FL— November 18, 2020 Sun Capital Partners, Inc. (“Sun Capital”), a leading private investment firm focused on investing in market-leading companies, today announced that its affiliate has signed a definitive agreement to acquire Miami Beach Medical Group (“MBMG” or “the Company”), a leading provider of primary care, specialty care and ancillary services to Medicare Advantage plan members in South Florida, from Gauge Capital. Terms of the private transaction were not disclosed.

Founded in 1997 and headquartered in Doral, Florida, MBMG is the second largest independent provider of capitated primary care services to Medicare Advantage plan members in South Florida, with a network of 19 medical centers across four counties. The Company has contracted relationships with 10 health plans and operates a management services organization (“MSO”) with 74 independent physicians serving more than 1,750 Medicare Advantage patients in the area.

“As Medicare Advantage enrollment continues to surge, MBMG is ideally positioned, both geographically and strategically,” said Marc Leder, Co-Chief Executive Officer of Sun Capital. “They have a highly experienced management team, a scalable platform and have made a number of key investments in infrastructure and care delivery. We look forward to leveraging our deep expertise in building healthcare organizations to help MBMG accelerate growth while delivering the highest quality service.”

“Working with the Sun Capital team gives us the resources we need to enhance operations and strengthen performance as we continue to deliver outstanding care to our patients and great value for our partners,” said Efrain Duarte, Chief Executive Officer, MBMG. “With the industry expertise Sun Capital brings to the table, we are well-positioned to build on our delivery model and take advantage of new growth opportunities.”

National Medicare Advantage enrollment is forecast to grow approximately 8% a year and is expected to cover 37 million members by 2025, due to its attractive dynamics for patients, providers and payors, and driven by the rapid expansion of the U.S. senior population. Florida is the second largest Medicare Advantage market by enrollment in the country, and South Florida accounts for 30% of total enrollees in Florida.

“MBMG has built a best-in-class organization, has an outstanding reputation for quality care, and maintains strong relationships with payors and healthcare providers,” added Daniel Florian, Managing Director at Sun Capital Partners. “Given their powerful platform and their position in one of the nation’s fastest-growing markets, we are excited about applying our healthcare experience and partnering with Efrain and the team to build on their leadership position.”

About Sun Capital Partners, Inc.

In 2020, Sun Capital Partners, Inc. celebrates 25 years of investing and partnering with outstanding management teams to accelerate value creation. Since 1995, Sun Capital has invested in more than 420 companies worldwide with revenues in excess of $50 billion across a broad range of industries and transaction structures. Over the quarter century, the Firm has built a reputation as a trusted partner recognized for its investment and operational experience, including particular expertise in Business Services, Healthcare, Industrial and Consumer sectors. Sun Capital has offices in Boca Raton, Los Angeles and New York, and an affiliate with offices in London. For more information, please visit www.suncappart.com