Pamlico Capital (“Pamlico”) today announced that Kelso & Company (“Kelso”) has acquired PE GI Solutions in a recapitalization transaction with management. Terms of the transaction have not been disclosed.
Founded in 1998, PE GI Solutions is the leading developer, owner, and manager of endoscopic surgery centers across the United States. The Company currently owns and manages 42 facilities in partnership with over 300 gastroenterologists and 18 health systems. Pamlico acquired PE, in partnership with management, in August 2013, and has supported the Company over the past three years as it has built out an impressive management team, accelerated its acquisitive growth strategy, and driven exceptional organic revenue growth across its portfolio. Under this new partnership with Kelso, Pamlico will be exiting their investment in PE.
Barry Tanner, PE’s former CEO, noted, “We are very grateful to the Pamlico team for all that they have done to help us grow. They have allowed us to stay focused on helping physicians deliver high-quality care in the most patient friendly and cost effective setting. Our partnership with Pamlico has been absolutely wonderful. We look forward to continued growth with our new partners at Kelso.”
Art Roselle, Partner at Pamlico, said “We enjoyed partnering with Barry Tanner and his team over the last three years as they have significantly enhanced PE’s value proposition to the Company’s partner physicians and driven growth through both organic initiatives and center acquisitions. We appreciate all of their efforts on behalf of Pamlico and our investors and wish them continued success with Kelso.”
Hank Mannix, Partner at Kelso, added, “Kelso is thrilled to be partnering with Barry Tanner and his team at PE. PE has an unparalleled reputation as a value-added partner to GI physicians, and we look forward to supporting the Company’s continued growth and success.”
Guidon Partners made a minority investment alongside Kelso & Company in the acquisition of PE. The Company appointed Greg Roth, a founder and partner of Guidon Partners, and former CEO of TeamHealth, to its Board of Directors.
PE and Pamlico were advised by Alston & Bird LLP (legal advisor). Kelso was advised by Skadden, Arps, Slate, Meagher & Flom LLP (legal advisor) and Jefferies LLC (M&A advisor).
About PE GI Solutions
PE GI Solutions is the leader in the development and management of ambulatory surgery centers predominately specializing in GI services. For more information about ASC development, acquisition, or hospital joint venture partnerships, visit www.endocenters.com or contact business development at (866) 240-9496.
About Pamlico Capit
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in the U.S. Pamlico Capital seeks control-oriented growth equity and buyout investments of up to $100 million alongside proven management teams in its target industries: Business & Technology Services, Communications, and Healthcare. Since inception, the firm, based in Charlotte, NC, has invested over $2.5 billion. For additional information, please visit www.pamlicocapital.com.
About Kelso & Company
Kelso & Company has been investing in North American private equity for over 35 years. Kelso benefits from a successful investment track record, a long-tenured and stable investing team, a reputation as a preferred partner to management teams and strategics, and a significant alignment of interest with all of our partners. Since 1980, Kelso has raised a total of nine private equity funds, representing $11.2 billion of capital, and has made over 115 investments, over 90 of which have been exited. For more information, visit www.kelso.com.
About Guidon Partners
Guidon Partners, a hands-on partnership founded by leaders in health care services, derives its name from a small, swallow-tailed flag that serves to rally the troops and signifies leadership. Our investment strategy is focused on helping companies who want our expertise and guidance, not just our money. We co-invest alongside venture, growth equity and buyout funds helping new investments or existing portfolio companies get to the next level of growth and profitability. More information on Guidon Partners can be found at www.guidonpartners.com.