Secondary Buyout • Healthcare Services

Bain Capital Private Equity, Summit Partners and Revelstoke Capital Partners Acquire US Renal Care

On February 13, 2019, private equity firm Bain Capital Private Equity, growth capital firm Summit Partners and private equity firm Revelstoke Capital Partners acquired healthcare services company US Renal Care from Leonard Green & Partners and Frazier Healthcare Partners

Acquisition Context
  • This is Bain Capital Private Equity’s 12th, Summit Partners’ 39th and Revelstoke Capital Partners’ 9th transaction in the Healthcare Services sector.
  • This is Bain Capital Private Equity’s 98th, Summit Partners’ 286th and Revelstoke Capital Partners’ 12th transaction in the United States.
  • This is Bain Capital Private Equity’s 9th, Summit Partners’ 22nd and Revelstoke Capital Partners’ 1st transaction in Texas.

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M&A Deal Summary

Date February 13, 2019
Target US Renal Care
Sector Healthcare Services
Buyer(s) Bain Capital Private Equity
Summit Partners
Revelstoke Capital Partners
Sellers(s) Leonard Green & Partners
Frazier Healthcare Partners
Deal Type Secondary Buyout
Advisor(s) Goldman Sachs (Financial)
Latham & Watkins
Weil Gotshal & Manges (Legal)

Target Company

US Renal Care

Plano, Texas, United States
US Renal Care is a provider of outpatient treatment centers for persons suffering from chronic and acute renal disease. The company serves more than 25,000 patients in 335 dialysis facilities in 32 states and the Territory of Guam. US Renal Care was founded in 2000 and is based in Plano, Texas.
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Buyers Overview 3

Buyer

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.


Deal Context for Buyer #
Overall 180 of 253
Sector: Healthcare Services 12 of 14
Type: Secondary Buyout 42 of 76
State: Texas 9 of 10
Country: United States 98 of 131
Year: 2019 1 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-07 Concardis

Eschborn, Germany

Concardis is a payment service provider that offers intelligent solutions to meet the extensive requirements for a modern cashless payment process the ability to accept payments made with all major credit and debit cards, including card terminals and contactless payment processes for face-to-face retailers, innovative solutions for e-commerce and m-commerce, as well as support in the form of customer management. Concardis was founded in 2003 and is based in Eschborn, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-05 Innocor

West Long Branch, New Jersey, United States

Innocor, Inc. is a provider of consumer-driven polyurethane foam products proven to deliver comfort, relaxation, and rejuvenation. Innocor Comfort®, the consumer products division, manufactures advanced memory foam products including pillows, mattress toppers, mattresses, etc. under Sleep Innovations®, Novaform® and other brands. Innocor, Inc. was founded in 1996 and is based in West Long Branch, New Jersey.

Sell -
Buyer

Summit Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1984
PE ASSETS 45.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Summit Partners is a private investment and asset management firm focused on venture, growth, credit, and public equity investing. Sectors of interest include business services, communications technology and services, consumer products, energy, financial services, healthcare and life sciences, industrial products, internet/information services, media/entertainment, semiconductors, electronics, and software. Summit Partners is known for having a proactive business development group for sourcing transactions. Summit will consider both minority or majority investment stakes and is willing to commit as little as $10 million or as much as $500 million in combined debt/junior capital per transaction. The Firm's geographic coverage spans North America and Europe. Summit Partners was formed in 1984 and is headquartered in Boston, Massachusetts.


Deal Context for Buyer #
Overall 332 of 415
Sector: Healthcare Services 39 of 46
Type: Secondary Buyout 21 of 29
State: Texas 22 of 29
Country: United States 286 of 335
Year: 2019 5 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-05 Club Champion

Willowbrook, Illinois, United States

Club Champion is one of the largest premium custom golf club fitting retailers in the world, with more than 45 locations across the United States. Club Champion uses highly trained fitters and the latest in ball flight measuring technology to deliver a Tour-quality fitting experience using an unbiased approach with the goal of producing longer, more accurate shots to lower golfers’ scores. Club Champion was founded in 2010 and is based in Willowbrook, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-26 Animal Supply Company

Grand Prairie, Texas, United States

Animal Supply Company is a pet food and supply distributor that provides weekly service to customers nationwide. With more than 1,000,000 square feet of warehouse space and some of the most advanced distribution technologies available, the company delivers over 15,000 unique SKUs to more than 9,000 customers with market-leading efficiency and accuracy. Animal Supply Company was formed in 1987 and is based in Grand Prairie, Texas.

Buy -
Buyer
DESCRIPTION

Revelstoke Capital Partners is a private equity firm focused on acquiring and building industry leading companies. For platform acquisitions, Revelstoke seeks profitable companies (> $5 million) and looks to commit $10 to $250 million per transaction. The Firm will consider majority and minority positions and seeks situations where companies have opportunities for growth, either organically or through add-ons. Targeted industries include healthcare services, transportation, logistics, specialty distribution, business services, and insurance. Revelstoke Capital Partners was formed in 2013 and is based in Denver, Colorado.


Deal Context for Buyer #
Overall 12 of 24
Sector: Healthcare Services 9 of 16
Type: Secondary Buyout 6 of 9
State: Texas 1 of 2
Country: United States 12 of 24
Year: 2019 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-15 Datalink Software

Tampa, Florida, United States

Datalink Software is a provider of integrated population health management applications that help healthcare payors and providers improve quality, practice management, and care coordination in value-based care settings. DataLink’s complete population health management platform is built around being a “one stop shop” that breaks through the communication barriers present at all levels of the healthcare industry, delivering total clinical control and insight to payors, managed service organizations, and medical practices while adding efficiency and improving patient outcomes. Datalink Software was founded in 2002 and is based in Tampa, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-18 ClareMedica Health Partners

Miami Lakes, Florida, United States

ClareMedica is a growing health care company that provides and coordinates comprehensive health care services for Medicare Advantage members and other customers through a network of employed and affiliated physicians. ClareMedica Health Partners was founded in 2016 and is based in Miami Lakes, Florida.

Buy -

Seller Profiles 2

SELLER

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 75.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


Deal Context for Seller #
Overall 35 of 55
Sector: Healthcare Services 2 of 5
Type: Secondary Buyout 12 of 19
State: Texas 7 of 9
Country: United States 34 of 52
Year: 2019 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-01 Milan Laser

Omaha, Nebraska, United States

Milan Laser is an operator of laser hair removal services with company-owned clinics operating across the US. Milan Laser offers unlimited treatment services for clients looking for painless and permanent hair removal. Milan Laser is based in Omaha, Nebraska.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-26 Tank Holding

Lincoln, Nebraska, United States

Tank Holding is a designer and manufacturer of proprietary rotationally-molded polyethylene and steel containers. Its broad line of products includes tanks for agricultural applications, intermediate bulk containers for hazardous material transportation, chemical storage tanks for industrial applications, as well as water and septic tanks for residential, commercial and municipal specifications. Tank Holding is based in Lincoln, Nebraska.

Sell -
SELLER

Frazier Healthcare Partners

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1991
PE ASSETS 3.4B USD
Size Large
Type Sector Focused
DESCRIPTION

Frazier Healthcare Partners is a private equity and venture capital firm specializing in Growth buyout investment specifically targets businesses that deal Healthcare, Life Sciences, Pharmaceutical services, medical products, and related sectors. Frazier Healthcare Partners was formed in 1991 and is based in Seattle, Washington with an additional office in Palo Alto, California; Boston, Massachusetts; and Menlo Park, California.


Deal Context for Seller #
Overall 14 of 29
Sector: Healthcare Services 6 of 12
Type: Secondary Buyout 6 of 12
State: Texas 1 of 2
Country: United States 14 of 29
Year: 2019 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-17 United Digestive

Atlanta, Georgia, United States

United Digestive is a provider of gastrointestinal physician services in the Southeast United States focused on providing high quality care to treat GI disorders, nutrition and digestive health. United Digestive was formed in 2018 and is based in Atlanta, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-27 CPS

Dublin, Ohio, United States

CPS is a provider of outsourced pharmacy services to hospitals and integrated health systems. CPS offers a suite of services, information technology and data informatics, including pharmacy management, technology-based tools and data analytics. CPS was founded in 1971 and is based in Dublin, Ohio.

Buy -