WindRose Health’s Ovation Fertility undergoes sales process

  • WindRose formed Ovation in ’15 through fusion of 4 labs
  • Harris Williams advises Los Angeles fertility treatment company
  • Other investors in fertility space: Lee Equity, TA, Warburg

WindRose Health Investors is evaluating the sale of Ovation Fertility, a network of in vitro fertility and genetic testing labs, four sources said.

Second round bids for the Los Angeles company are due this week, one of the people said.

Harris Williams is providing sell-side financial advice, two of the other people said. One of the people placed Ebitda at about $15 million.

New York’s WindRose, then called MTS Health Investors, formed Ovation Fertility in 2015 through the marriage of four IVF labs across Tennessee, Texas, Nevada and California.

Today Ovation encompasses eight IVF laboratories and two genetics labs that span seven states, offering various tests for infertility patients.

Ovation’s IVF lab services include Anti-Mullerian hormone (AMH) testing to determine a woman’s ovarian reserve, computer-automated time-lapse analysis and Omics technology to evaluate embryonic development, among other tests.

Through genetic testing services, Ovation helps determine whether individuals considering pregnancies are at risk of passing on a preventable genetic condition.

The company also offers donor egg services and long-term storage of reproductive material, as well as egg freezing. The company partners with physician clinics focused on IVF services.

Other private equity-backed players operating in the fertility treatment space include Lee Equity’s Prelude Fertility, TA AssociatesCCRM and Sagard Capital PartnersIntegraMed. There’ s also IVA-RMA Global, which has a large U.S. presence via subsidiaries including RMA of New Jersey.

Outside of the U.S., Warburg Pincus backs Chinese assisted-reproduction company Jinxin Fertility Group. The company in February filed to list its shares on the Hong Kong Stock Exchange.

WindRose, for its part, is also exploring the sale of myNEXUS, which works with payers to help coordinate and rein in the costs of healthcare, Buyouts reported in September.

The firm is also among investors in AGS Health, an offshore provider of healthcare revenue-cycle management, which engaged Houlihan Lokey for a sales process in 2018, Buyouts reported.

WindRose Health Investors V raised $705 million in January. The firm targets investments in companies ranging from $25 million to $300 million in enterprise value.

Action Item: Check out Windrose’s latest Form ADV: