Irving Place Capital Agrees to Recapitalize National Surgical Hospitals
January 5, 2011
Irving Place Capital (“IPC”), a leading middle-market private equity firm, announced today that it has signed agreements to recapitalize, in partnership with senior management, National Surgical Hospitals (“NSH”), an owner, operator, and developer of surgical facilities in partnership with local physicians. The terms of the transaction were not disclosed.
Founded in 1999, NSH currently owns and operates a network of 14 surgical hospitals and seven ambulatory surgery centers located in 10 states across the U.S. The transaction also includes the acquisition by NSH of a majority interest in Lafayette Surgical Specialty Hospital, a surgical hospital located in Lafayette, Louisiana.
Upon completion of the transaction, David Crane will become Chairman of NSH’s Board of Directors, working closely with the company’s existing management team to realize the company’s growth objectives. Mr. Crane, who currently serves as a Senior Advisor to IPC, has more than 25 years of operating experience at physician-partnered surgical companies, having been CEO of Medcath, Inc. (MDTH) and currently serving as Chairman of New Hope Bariatrics.
John G. Rex-Waller, President and CEO of NSH, said, “IPC’s capital strength will allow us to reinvigorate our acquisition program and enhance our ability to add services and invest in the latest proven technology to empower physicians to deliver better outcomes for patients. We welcome David Crane as our new Chairman. His breadth of knowledge of the physician-partnered health services industry will be invaluable as we take our well proven model of delivering superior cost-efficient results by working closely with physicians into the new world of national healthcare reform.”
IPC will replace NSH’s current owners, led by Ferrer Freeman & Company, Charlesbank Capital Partners, and JPMorgan Asset Management.
Bob Juneja, Senior Managing Director at IPC, said, “NSH is ideally positioned to thrive in the evolving healthcare industry having developed a successful operating model with their physician partners to deliver excellent clinical outcomes and satisfaction to their patients. We look forward to working closely with NSH’s strong management team to help the company acquire additional facilities as well as expand its existing facilities’ capabilities.”
David Freeman, Co-Founder of Ferrer Freeman & Company, said, “The NSH management team and employees have built a premier surgical facilities company over the last 10 years. The shareholders are very pleased that the NSH management team has partnered with IPC and David Crane to pursue the company’s next phase of growth.”
Jefferies Finance LLC has provided fully committed financing for the transaction. The transaction is expected to close around month-end.