BOCA RATON, Fla. & CHICAGO--(BUSINESS WIRE)--Sun Capital Partners (“Sun Capital”), a leading healthcare services investor, and Sterling Partners (“Sterling”), a diversified investment management platform, today announced the merger of Sun Capital portfolio company West Dermatology (“WestDerm”) and Sterling portfolio company Platinum Dermatology Partners (“Platinum”). Terms of the transaction were not disclosed.
The combination of WestDerm, a group providing business support services to over 300 dermatology providers, including many of the most prominent dermatologists in the Western United States, and Platinum, a dermatology group practice organization with a strong presence among many of the leading physicians in the fast-growing Texas and Arizona markets, creates a clear industry leader with more than 100 locations spanning the Southwestern U.S. and Southern California.
“We are very excited by the opportunity to bring together two leading dermatology organizations highly focused on clinical excellence, with strong cultural and geographic synergies,” said Daniel Florian, Managing Director at Sun Capital. “Merging with Platinum will allow WestDerm to continue to accelerate its expansion, grow its footprint, and expand patient care. We expect the combined platform to lead the industry in clinical excellence, create the most attractive platform for dermatologists to partner with, and deliver the best patient care in dermatology.”
“It has been a privilege to be involved in Platinum’s growth story,” said Steven Taslitz, Co-Founder and Chairman at Sterling Partners. “We’re thrilled to have Platinum partner with WestDerm, and together continue their proven track records of excellence in this industry. We look forward to seeing the company’s continued growth and future successes.”
Founded in 1962 and headquartered in Newport Beach, California, WestDerm is a rapidly growing practice management group focused exclusively on dermatology. Acquired by an affiliate of Sun Capital in February 2020, WestDerm provides administrative support and a dynamic clinical community for some of the most pre-eminent providers in the Western U.S. offering cosmetic, surgical, and medical dermatology services for many skin conditions, cancer prevention, and remediation.
Formed by a partnership between Sterling Partners and Dallas Associated Dermatologists in 2016, Platinum benefited from Sterling’s resources, capital, and years of experience in healthcare services. Over the last six years, Platinum welcomed multiple practices into its network resulting in significant growth, particularly in the Dallas/Fort Worth and Phoenix markets.
“Sterling’s constant support, operational expertise, and industry connections allowed us to successfully achieve the growth vision we had with them when we started our partnership. We look forward to our continued growth as we partner with the team at WestDerm, who bring unique strengths and capabilities to our expanding network,” said Michael Pennington, Co-Founder and President of Platinum Dermatology Partners.
“We look forward to partnering with Platinum. We’re excited to leverage our combined expertise and market presence to explore new growth opportunities and enhance our service offerings to bring world-class care to more patients,” said Brian Stern, CEO of WestDerm.
Sun Capital and WestDerm were represented by Cantor Fitzgerald, Edgemont Partners, and Kirkland & Ellis in the transaction, while Sterling and Platinum were represented by Houlihan Lokey, McDermott, Will & Emery, and Katten Muchin Rosenman.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a global private equity firm focused on partnering with outstanding management teams to accelerate value creation. Since 1995, Sun Capital has invested in more than 475 companies worldwide with revenues in excess of $50 billion across a broad range of industries and transaction structures. The Firm has built a reputation as a trusted partner, recognized for its operational experience. Sun Capital focuses on defensible businesses in growing markets with tangible performance improvement opportunities in the Business Services, Consumer, Healthcare, Industrial, and Technology sectors. The Firm has offices in Boca Raton, Los Angeles and New York, and an affiliate with offices in London. For more information, please visit www.suncappart.com.
About Sterling Partners
Sterling Partners (“Sterling”) is a diversified investment management platform founded in 1983 and based in Chicago. The firm started with four young entrepreneurs, who went on to build one of Chicago’s most prominent private equity firms. Today, the firm has expanded beyond its strong private equity practice into several other investment strategies. Complementing its institutional fund practice, Sterling invests in a wide variety of companies in various stages of growth - from early-stage, high-growth businesses to mature, profitable companies – on a deal-by-deal basis. These investments cross several industries, and the firm makes control, non-control, and preferred equity investments. Sterling adds value to its portfolio companies and the founders with whom it partners with its entrepreneurial roots, deep domain expertise, focus on transformational growth, and access to world-class executive talent. For more information, please visit www.sterlingpartners.com.
About WestDerm
WestDerm is committed to providing comprehensive dermatology services and education to patients so that they can have longer, healthier lives. Committed to clinical excellence, the providers at WestDerm are world-class experts in skincare, have decades of experience across dermatology, and all the doctors are board-certified. Recognized as the clinical leaders in dermatology in the country, WestDerm continues to expand its footprint and service offerings to best care for the patients in the communities they serve.
Headquartered in Newport Beach, CA, the company offers access to medical, cosmetic, and surgical dermatology services in Arizona, California, and Nevada. WestDerm also has an industry-leading research department and a best-in-class dermatopathology lab. WestDerm continues to grow and is always looking to add great providers and top talent to its community of practices. Patients interested in being seen at one of the many WestDerm locations can schedule appointments directly on the WestDerm website at www.westderm.com, where they will find additional information on the WestDerm providers, locations, and the conditions they treat.
About Platinum Dermatology Partners
Headquartered in Dallas, TX, Platinum Dermatology Partners builds true partnerships with highly reputable dermatology practices to empower growth and best-in-class dermatology services. In Platinum’s differentiated, physician-centered practice management model, physicians drive clinical care and their practice culture, while benefiting from the vast business expertise, resources, and shared best practices available through the Platinum network. As a comprehensive physician management services organization, Platinum offers collaboration among top-notch dermatology professionals and practice growth opportunities unmatched in an independent practice. For more information about Platinum Dermatology Partners, please visit www.platinumderm.com.
