Morgan Stanley Infrastructure Buys SpecialtyCare from Kohlberg
(Bloomberg) -- Morgan Stanley Infrastructure Partners has acquired clinical-services provider SpecialtyCare Inc. from private equity firm Kohlberg & Co., the latest infrastructure investor to foray into health care.
“SpecialtyCare provides an essential solution to its partners in an industry with considerable tailwinds through a contracted business model,” said Chris Ortega, Morgan Stanley Infrastructure Partners’ head of the Americas. The firm was attracted by SpecialtyCare’s strong existing market position and recurring revenues, and the deal marks its first health care-focused investment.
Terms of the transaction weren’t disclosed. SpecialtyCare has roughly $756 million in outstanding debt, according to data compiled by Bloomberg.
“We believe working with Morgan Stanley Infrastructure Partners can allow us to further invest in our team,” SpecialtyCare Chief Executive Officer Sam Weinstein said in an emailed statement.
The company’s more than 1,500 clinicians support over 500,000 medical procedures per year. SpecialtyCare operates in more than 1,200 hospitals across 46 U.S. states and offers surgical assistance, endoscopic support and sterile processing services. Kohlberg acquired the company in 2017 from American Securities, another private equity firm.
In September, an infrastructure-focused affiliate of Macquarie Group Ltd. agreed to buy a 50% stake in a portfolio of eight Massachusetts-based hospitals. Stonepeak Partners in June said it would inject equity and debt financing to support Akumin Inc.’s purchase of Alliance HealthCare Services Inc., a provider of radiology and oncology services.
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