Edgemont Partners Advises Soderstrom Skin Institute and MedPro Advantage on a Strategic Transaction With H.I.G. Growth Partners
Innovative provider of comprehensive dermatology services completes partnership with leading private equity firm to accelerate growth and expand reach
Transaction highlights Edgemont’s continued leadership in clinician services M&A
NEW YORK, NY – July 11, 2019 – Edgemont Partners, a leading middle market healthcare investment bank which counts clinician services as one of its core areas of expertise, is pleased to announce that it served as the exclusive financial advisor to MedPro Advantage (“MedPro” or the “Company”), the affiliated management services organization for Soderstrom Skin Institute (“SSI”), on a strategic investment in MedPro by H.I.G. Growth Partners, the dedicated growth capital investment affiliate of H.I.G. Capital.
SSI provides a comprehensive suite of dermatology, surgical and cosmetic skin services at its surgery center and clinic locations throughout Illinois and Iowa. The transaction closed on June 20, 2019 and was led by Luke Mitchell, Managing Director and Partner and supported by Vitaliy Marchenko, Vice President, and Edgemont Partners’ transaction team. Edgemont is the preeminent healthcare-focused middle market investment bank, having focused on serving the advisory needs of healthcare providers and entrepreneurs for 18 years.
SSI’s strategic transaction with H.I.G. continues the trend of experienced healthcare investors backing leading providers of physician services in markets that are frequently underserved or lack access to comprehensive care. For the past 45 years, SSI has been an innovator in providing cutting-edge dermatological services in the tertiary markets of Illinois and Iowa. SSI’s 20+ providers, staffing eight clinics and a surgery center, offer a full range of dermatological, surgical, reconstructive, cosmetic and aesthetic services to patients. The providers are supported by a staff of over 220 employees, including over 40 at MedPro dedicated to the administrative and business needs of SSI’s clinics.
H.I.G. and MedPro intend to accelerate SSI’s growth through a combination of developing new clinics in underserved markets, as well as partnerships with existing physician groups that would benefit from MedPro’s sophisticated business operations and SSI’s clinical leadership. Following the transaction, Dr. Carl Soderstrom, founder of SSI, will continue in his role as SSI’s Medical Director, while Ms. Tina Peugh will continue in her role as Chief Executive Officer of MedPro. As part of the investment, Robert Coward, former President of Physician Services at Envision, and President of Amsurg and Sheridan, will join the Company’s board of directors.
“Luke and his team at Edgemont led us through an extensive search that evaluated hundreds of potential investors, in order for us to find a partner offering the ideal organizational fit and expertise,” said Dr. Soderstrom. “H.I.G. brings deep expertise growing companies, experience in managing clinician services, capital for future growth, and a shared commitment to the people and values that have made MedPro and SSI so successful since our founding. We are thrilled to have H.I.G. supporting us as we enter this next phase of growth.”
Ms. Tina Peugh, CEO of MedPro, said, “Our shareholders and management team could not have asked for a better group of experienced, knowledgeable advisors than the team at Edgemont. Edgemont turned a huge undertaking into a well-disciplined process, at all times keeping our goals their number one priority. Our company was only able to reach this milestone because of Luke and his team.”
This transaction represents Edgemont’s 17th closed transaction on behalf of independent physician groups.
“No other investment banking firm has represented more large and mid-sized independent physician groups, and the depth and breadth of our experience in dermatology is unmatched,” said Mitchell. “Edgemont is the leading investment bank for independent physician groups, and this transaction is a perfect example of the commitment we bring to every engagement, illustrating our dedication to finding the perfect partner for our clients, and completing transactions on the most competitive terms. Edgemont’s Clinician Services Group serves practices across a broad range of office-based and hospital specialties, including dermatology, ophthalmology, urology, urgent care, gastroenterology, pain management, women’s health / OB-GYN, and fertility as well as emergency medicine, hospitalist medicine, anesthesiology, radiology, and orthopedics.”
Edgemont Partners served as the exclusive financial adviser to SSI and MedPro, with Norton Rose Fulbright serving as legal advisor. McGuireWoods served as legal advisor to H.I.G. Growth Partners. Debt financing to support the recapitalization was provided by Goldman Sachs Specialty Lending Group.
About Soderstrom Skin Institute
With more than 125 years of combined experience, the board certified dermatologists, plastic surgeons, Mohs micrographic surgeon, and certified physician assistants are qualified to diagnose and treat all skin conditions. Soderstrom Skin Institute began as one small office in Morton, Illinois. Since opening in 1973, Soderstrom has grown into a highly regarded skin care practice.
About H.I.G. Growth Partners
H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm with over $31 billion of equity capital under management.* We seek to make both majority and minority investments in strong, growth oriented businesses located throughout North America, South America and Europe. We will invest up to $75 million in equity in a given company and target investments in profitable growth oriented businesses with between $10 million and $100 million in revenues. We consider investments across all industries, but focus on certain high-growth sectors where H.I.G. has extensive in-house expertise such as technology, healthcare, internet and media, consumer products and technology-enabled financial and business services. Growth Partners strives to work closely with our management teams to serve as an experienced resource, providing broad-based strategic, operational, recruiting, and financial management services from a vast in-house team and a substantial network of third-party relationships. For more information, please contact Mark Tricolli at (617) 262-8455 or refer to the H.I.G. website at www.HIGgrowth.com.
*Based on total capital commitments managed by H.I.G. Capital and affiliates.
About Edgemont Partners
Edgemont Partners is a premier investment bank that provides merger and acquisition advisory
and growth capital raising services exclusively to healthcare companies. We focus solely on
providing expert strategic advice and transaction execution, bringing a steadfast commitment to our clients, driven always by what is in their best interest. This dedication enables us to deliver independent conflict-free advice, to serve as trusted advisors to healthcare entrepreneurs, management teams and investors, and to execute with exceptional results.
Investment banking services are provided by Edgemont Capital Partners, LP, a registered broker-dealer and member of FINRA and SIPC.