Combined Organization to Benefit from Enhanced Group of Elite Physicians, Operational Synergies, Increased Scale
June 21, 2022 – CHICAGO – Sterling Partners (“Sterling”), a diversified investment management platform, and Sun Capital Partners (“Sun Capital”), a leading healthcare services investor, today announced the merger of Sterling portfolio company Platinum Dermatology Partners (“Platinum”) and Sun Capital portfolio company West Dermatology (“West”). Terms of the transaction were not disclosed.
The combination of Platinum, a dermatology group practice organization with a strong presence in the Texas and Arizona markets, and West, a group providing services to over 300 dermatology providers, creates a clear industry leader. Combined the organization has more than 100 locations spanning the Southwestern U.S and Southern California.
“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 West Dermatology, 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.”
“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 West Dermatology to continue to accelerate its expansion and grow its footprint. We expect the combined platform to lead the industry in clinical excellence and create the most attractive platform for dermatologists to partner with.”
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.
Founded in 1954 and headquartered in Newport Beach, California, West Dermatology is a rapidly growing practice management group focused exclusively on dermatology. Acquired by an affiliate of Sun Capital in February 2020, West provides administrative support and a dynamic clinical community for some of the most pre-eminent providers in the western US offering cosmetic and medical dermatology services for common skin conditions, cancer prevention and remediation.
“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 West, who bring unique strengths and capabilities to our expanding network,” said Michael Pennington, Co-Founder and President of Platinum Dermatology Partners.
Sterling and Platinum were represented by Houlihan Lokey, McDermott, Will & Emery, and Katten Muchin Rosenman. Sun Capital and West Dermatology were represented by Cantor Fitzgerald, Edgemont Partners, and Kirkland & Ellis in the transaction.
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 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.