Brocair Partners Advises Hyperbaric Oxygen Therapy Company on Sale to Private Equity Group – September 2009
Brocair Partners advised a Hyperbaric Oxygen Therapy Company (“The Center”), a private New York company, on its sale to Candescent Partners, a consortium of private equity purchasers. Candescent Partners, a private equity firm based in Massachusetts acted as the lead investor along with co-investors Harbert Management Corporation, based in Tennessee, and Gemini Investors, based in Massachusetts.
Josh Giesey, Associate at Brocair, explained the key issues of the transaction, “We think this transaction is tremendously beneficial to all parties involved. The transaction was exciting considering that the hyperbaric oxygen therapy industry is in its infancy stage and presents great potential for growth. We believe Candescent brings a wealth of experience in transforming regional firms into multi-state operating entities. Personally, it was a pleasure to work with all parties involved and I am excited to see the new company grow.”
Gregg Blake, Managing Partner of Brocair, said the transaction was successful, despite the difficult economy. “The past twelve months have been an extremely challenging environment for healthcare M&A. But even in tough times, solid, rapidly growing, cash-flow positive companies have continued to be attractive assets. That was certainly our experience with The Center.”
The company develops and operates comprehensive wound care centers and hyperbaric oxygen therapy (“HBOT”) facilities within hospitals. The company commenced operations in 2005 and has operations mainly on the east coast of the US as well as in select Midwest states. In addition to hyperbaric oxygen therapy the company offers state-of-the-art wound care therapies for individuals with chronic skin ulcers.
Candescent Partners, based in Boston, MA, provides capital solutions to growth companies in the middle market. The firm was started by Steve Jenks and Sandy McGrath, who collectively have over 20 years of investing experience with more than $600 million in over 40 companies.
Harbert Mezzanine Capital, a division of Harbert Management Capital, is based in Nashville, Tennessee. The Mezzanine Capital group typically provides $3 million to $15 million in subordinated debt to companies for the purposes of growth, acquisitions, recapitalizations or management buyouts.
Gemini Investors is a private equity firm based in Wellesley, MA. Gemini was established in 1993 and has invested in over 60 middle market companies. Gemini invests over a wide range of industries, which include technology, business services, consumer services, healthcare, education, manufacturing and distribution.