Urology Group seeks private equity partner

Urology Group is poised to be among the next urologic-care providers to gain private equity backing in one of the latest physician specialty areas deemed ripe for consolidation.

The Midwest-concentrated provider of treatment for urological and reproductive conditions has retained healthcare-focused Provident Healthcare Partners to advise on a sales process, Buyouts has learned.

While physician-services groups across the dental, dermatology and vision subsectors have already seen significant PE investment, urology is one vertical that remains largely untouched.

The first mover into the space was Audax Private Equity, which owns Chesapeake Urology Associates of Owings Mills, Maryland. The Mid-Atlantic urology group encompassing close to 70 physicians traded for a multiple of EBITDA of about 8x to 9x in 2016, one source familiar with the matter said.

Urology Group — officially Tri State Urologic Services P.S.C. — is likely to field good interest as investors look to build out platforms in a highly fragmented space.

The company is projecting revenue of around $68 million and adjusted EBITDA of $7 million to $8 million for 2017, marketing materials obtained by Buyouts show.

Urology Group, whose Norwood Campus headquarters are located in Cincinnati, treats conditions that affect the urinary tract in men and women, as well as the reproductive system in men. The group’s ancillary offerings include radiation therapy for treating cancer, as well as pathology services.

The company’s outpatient ambulatory surgery center at its Norwood Campus is the highest-volume urology-only surgery center in the country, the company’s website says.

Led by CEO Earl Walz, Urology Group provides services via 12 locations primarily in Ohio, as well as in Kentucky and Indiana. The group encompassed more than more than 40 providers including 39 urologic physicians as of August.

Representatives of Urology Group couldn’t be reached, while those with Provident declined to comment.

Action Item: More about Urology Group: urologygroup.com

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