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Private Equity Health Care Acquisitions – December 2020

January 6, 2021

In light of the growing private equity acquisitions of health care companies and the risks associated with private equity ownership of health care providers, the Private Equity Stakeholder Project will be tracking private equity-backed health care acquisitions. Below is a list of private equity health care buyouts and add-on acquisitions completed during December 2020. We will continue to track acquisitions on a monthly basis.

See November 2020 acquisitions here

Pinnacle GI Partners- H.I.G. Capital

H.I.G. Capital has partnered with the Center for Digestive Health to create Pinnacle GI Partners, a new digestive health investment platform in Michigan.[i]

H.I.G. has been an active acquirer of health care companies lately; in October H.I.G. acquired St. Croix Hospice, a provider of hospice services with 35 branches in six Midwestern states.

H.I.G.’s spate of recent health care acquisitions raise concern given the company’s recent track record with health care companies. For example, H.I.G. is currently facing a Federal lawsuit for billing fraud allegedly committed by its mental health company South Bay Community Services, a subsidiary of Community Intervention Services. The mental health company settled in 2018, but litigation against H.I.G. itself remains ongoing. Private Equity Stakeholder Project has written about the litigation against H.I.G. and its mental health company here.

H.I.G. also owns prison health company Wellpath, one of the largest healthcare companies serving jails, prisons, detentios facilities, and state psychiatric hospitals. Over the last decade Wellpath subsidiaries have been sued over a thousand times for allegations including understaffing and inadequate staff training that lead to negligence and untimely care, in some cases resulting in patient death.[ii]

Midwest Dental – Gryphon Investors

Smile Brands, which is owned by private equity firm Gryphon Investors, has acquired Midwest Dental from private equity firm FFL Partners. Both Smile Brands and Midwest Dental are dental services organizations (DSOs), which provide management services to dental practices.[iii]

Gryphon Investors acquired Smile Brands in August 2016 from another private equity firm.[iv] It is one of the largest DSOs in the U.S., with 420 affiliated locations across 17 states in the U.S. The acquisition of Midwest Dental brings the combined companies’ total employees to 8,000.[v]

Gryphon reportedly tried to sell Smile Brands in late 2019 but struggled to find a buyer as of January 2020.[vi] The year before, Gryphon had completed a dividend recapitalization of Smile Brands, adding $300 million in debt to pay itself a dividend.[vii]

Gryphon’s acquisition of Midwest Dental via Smile Brands represents another step in private equity’s consolidation of the dental services industry. Currently, nine out of the top ten DSOs in the US are owned by private equity firms and investor interest has shown no sign of abating.[viii] In addition to Gryphon Investors’/ Smile Brands’ acquisition of Midwest Dental, December saw two other DSO acquisitions: Allied Dental, owned by Riverside Partners, merged with TriSpan-backed PG Dental Holdings[ix] and Aces Dental was acquired by Absolute Dental Management, backed by Ares Capital and Beecken Petty O’Keefe & Company.[x]

Add-On Acquisitions

CompanyTypePE FirmAcquiring Entity
Abeo ManagementRevenue cycle managementVarsity Healthcare PartnersDuvaSawko
Aces DentalDental servicesAres Capital and Beecken Petty O’Keefe & CompanyAbsolute Dental Management
Advanced Physical Therapy CenterPhysical therapyAudax GroupPhoenix Rehabilitation and Health Services
Allied DentalDental servicesTriSpanPG Dental Holdings
Apollo PharmaceuticalsPharmaceuticalsArchiMed and Tethys InvestmentProvepharm
ArtericHealth care digital marketingMountaingate CapitalRelevate Health Group
AspariaHealth techApollo Global ManagementIntrado Corp
Atlantic Physical TherapyPhysical therapyAudax GroupPhoenix Rehabilitation and Health Services
Behavior PioneersBehavioral healthHavencrest Capital ManagementApara Autism Center
Behavior Therapy Solutions of MinnesotaBehavioral healthFrazier Healthcare PartnersCaravel Autism Health
Benvenue MedicalMedical devices and suppliesCherokee Advisors, Kohlberg & Company and Ellis CapitalSpinal Elements
Bio-Concept LaboratoriesMedical devices and suppliesAurora Capital Group and The Cambria GroupPace Analytical Services
BioclinicaHealth techNordic Capital, Novo Holdings, Ares Capital and AstorgeResearch Technolog
Biological LaboratoryClinical laboratoryPasaca CapitalInnova Medical Group
BreatheAmericaAllergy and athsma treatmentHarvey & Company and Source CapitalAspire Allergy & Sinus
Catalyst Behavior SolutionBehavioral healthPharos Capital GroupThe Family Treatment Network
Centennial HospiceHospiceDorilton CapitalTraditions Home Health Care
Centurion Service GroupMedical devices and suppliesPrettybrook Partners and TowerBrook Capital PartnersTRIMEDX
Choices of LouisianaBehavioral healthBPEA Private Equity and Webster Equity PartnersBayMark Health Services
Clear View Behavioral HealthBehavioral healthFFL PartnersSummit Behavioral Healthcare
DeerwalkHealth techGTCRCedar Gate Technologies
Desert Perinatal AssociatesObstetricsSverica Capital ManagementWomen’s Health USA
Eye Center Of TexasEye careShore Capital PartnersEyeSouth Partners
Harbor Light HospiceHospiceDorilton CapitalTraditions Home Health Care
HealthxHealth techThoma BravoZipari
HMC HealthWorkHealth management servicesPeriscope EquityIntegrated Behavioral Health
Innovative Medical SystemsMedical devices and suppliesAres Private Equity GroupConvergint Technologies
Intelicare Health ServicesHome healthRevelstoke Capital PartnersThe Care Team
KerafastBioresearch materialsThompson Street Capital PartnersLifeSpan BioSciences
Lakeway Home HealthHome health3 Rivers CapitalAmazing Care
Mednax (radiology spinoff)RadiologyStarr Investment HoldingsRadiology Partners
Midwest DentalDental servicesGryphon Investors, PineBridge InvestmentsSmile Brands
MüvrMedical devices and suppliesTPGExactech
Nielsen DermatologyDermatologyHarvest PartnersAdvanced Dermatology & Cosmetic Surgery
NovelCathMedical devices and supplies3i GroupCirtec Medical
Orizon360Health techBPEA Private Equity, DWS Group and Revelstoke Capital PartnersDataLink Software
Patient PowerOnline cancer patient social networkTopspin Partners and Praesidian CapitalRemedy Health Media
Rehabcare Group (Kindred Healthcare subsidiary)Contract rehabilitation servicesFlexpoint FordSelect Rehabilitation
Seasons Hospice & Palliative CarHospiceAdvent InternationalAccentCare
TractManagerHealth techSkyKnight Capital, Clearlake Capital Group and New Mountain CapitalSymplr
Trifecta ClinicalHealth techAnnox Capital, Novo Holdings, Leonard Green & Partners, Arsenal Capital Partners and MSD Private CapitalWIRB-Copernicus Group
University OphthalmologyEye careMoonSail Capital, Plenary Partners and Muzinich & CoArbor Centers For Eyecare
UpdoxHealth techSixth Street Partners and Silver Lake ManagementEverCommerce
ViaMed HoldingsMedical devices and suppliesVance Street Capital, PA Capital, Lexington PartnersMotion Dynamics
VirTrialHealth techGenstar CapitalSignant Health

PE Buyouts/Investments

CompanyTypePE Firm
Beacon Behavioral HospitaBehavioral healthLatticework Capital Management
CytelHealth techNordic Capital and Astorg
DigisonicsHealth techHG Capital (UK) and Ardan Equity Partners
Market Access TransformationHealth techSilversmith Capital Partners
NutrisystemWeight managementKainos Capital and MSD Private Capital
Physical Rehabilitation NetworkPhysical therapyGryphon Investors
Pinnacle GI PartnersDigestive healthHIG
Refresh Mental HealthBehavioral healthKelso Private Equity
SolmetexMedical devices and suppliesAvista Capital Partners
Specialty Networks ConsultingHealth care consultingLinden Capital Partners
The Benecon GroupHealth insurance managementTA Associates
UroGPOGroup Purchasing Organization (GPO) for urologistsNautic Partners, Linden Capital Partners
US Med-EquipMedical devices and suppliesFreeman Spogli & Co.
Wedgewood PharmacyPharmaceuticalsPartners Group







[vii] Pitchbook, accessed December 2020.

[viii] According to Becker’s Dental and DSO Review, the top ten DSOs are Heartland Dental (KKR), Aspen Dental (Ares Management, Leonard Green & Partners), Pacific Dental Services, Smile Brands (Gryphon Investors), American Dental Partners (JLL Partners), Great Expressions Dental Centers (Roark Capital, Ares Capital), Dental Care Alliance (Harvest Partners, Crescent Capital), Affordable Dentures & Implants (Berkshire Partners, Partners Group), Western Dental (New Mountain Capital), InterDent (H.I.G.). Ownership data sourced from Pitchbook, accessed December 2020.



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