Healthcare

Dean Mihas Managing Director, GTCR

Sean Cunningham Managing Director, GTCR

Dean Mihas, Sean Cunningham Managing Directors, GTCR

Acquisition Activity

20+

platform acquisitions*

*Additional information

Acquisition Activity

$9 +

billion of total purchase
price since 2000.*

*Additional Information

Acquisition Activity

50 +

add-on acquisitions
completed since 2000.*

*Additional Information

Acquisition Activity Since 2000
Additional Information

Healthcare

Since 1981, healthcare has been a consistent cornerstone of GTCR’s investment strategy.

The firm’s long history in the industry and our deep domain knowledge create opportunities to partner with exceptional management leaders and to generate unique perspective on the underlying trends that drive the healthcare industry today.

GTCR has extensive experience investing across the healthcare and life sciences industries, including branded and generic pharmaceuticals, medical devices, life science tools and diagnostics, healthcare information technology, providers, payors, distribution and ancillary services. We continue to identify attractive opportunities to invest capital across these sectors of healthcare—driven by the positive, long-term healthcare utilization trends and an evolving industry landscape that increasingly values new business models that emphasize both clinical outcomes and cost-containment.

Portfolio Company

Cedar Gate Technologies

Cedar Gate Technologies was formed in August 2014 as a partnership between David Snow and GTCR. Cedar Gate’s mission is to build a transformative company in the healthcare data and analytics market by acquiring outstanding businesses in this space and accelerating their growth.

Location: Greenwich, CT

Phone: 203.930.5500

Initial Investment: 08/14/2014

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David Snow

David Snow, a 34-year veteran of the healthcare industry, most recently served as the chairman and chief executive officer of Medco, one of the nation’s largest pharmacy benefit managers. He joined the company as chairman and CEO in 2003 prior to the spin-out of Medco by Merck. During his tenure, Mr. Snow made investments in data analytics capabilities a strategic priority to continually strengthen the core Medco platform. He served as CEO until the company’s sale to Express Scripts in 2012.

Prior to joining Medco, Mr. Snow served as president and chief operating officer at Empire BlueCross BlueShield. Throughout his career, he has served in executive leadership roles for various healthcare companies, including Oxford Health Plans, American International Healthcare and US HealthCare. He also co-founded and served as president and CEO of Managed Healthcare Systems, which was later renamed AmeriChoice.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Cole-Parmer Instrument Company

Cole-Parmer offers a portfolio of industry-leading brands and private-label products in niche applications to fulfill important needs in the market. The company has deep technical expertise across a range of specialty products in the field of fluid handling, test and measurement, electrochemistry and other laboratory products. Cole-Parmer sells its products across a range of end-markets to a diverse, global customer base.

Cole-Parmer was founded in 1955 and acquired by Thermo Fisher in 2001. GTCR carved Cole-Parmer back out of Thermo Fisher in 2014 to create a standalone company.

Location: Vernon Hills, IL

Phone: 800.323.4340

Initial Investment: 08/15/2014

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Bernd Brust

Bernd Brust serves as chairman and CEO of Cole-Parmer Instrument Company. Before joining Cole-Parmer, Mr. Brust served as president and CEO of Qualicaps, a leading provider of capsule manufacturing and processing equipment for pharmaceutical companies, which sold to Mitsubishi Chemical Holdings in 2013.

Prior to his role with Qualicaps, Mr. Brust was chief commercial operations officer at Life Technologies Corporation and responsible for a $3.5 billion global business. Mr. Brust held prior leadership roles with Invitrogen Corporation (a predecessor to Life Technologies) and with GE Medical Systems.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Correct Care Solutions

GTCR became an investor in Correct Care Solutions ("CCS") in 2014 through the strategic combination of CCS and former GTCR portfolio company Correctional Healthcare Companies, Inc. ("CHC"). CCS is a leading comprehensive healthcare solutions provider to local, county and state correctional and behavioral facilities. CCS’s integrated healthcare solutions address a wide range of client and correctional needs, including inmate healthcare, outpatient treatment, mental health, behavioral programming and treatment case management services.

Location: Nashville, TN

Phone: 800.592.2974

Initial Investment: 12/02/2012

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Jorge Dominicis

Jorge Dominicis serves as the chief executive officer for Correct Care Solutions Group Holdings. His role is to ensure operational excellence and to drive the organization’s strategic focus. Before joining CCS, Mr. Dominicis served for 10 years as president of GEO Care, during which GEO Care increased revenue six-fold. Prior to that, he served for 14 years as vice president of corporate affairs at Florida Crystals Corporation, where he was responsible for all governmental and public affairs activity at the local, state and federal levels, as well as for the coordination of community outreach and charitable involvement.

Additionally, in Florida, Mr. Dominicis served in various public and government policy positions, including St. Mary’s Medical Center Governing Board and the Criminal Justice Commission. He holds a bachelor's degree in business administration, finance and international business from Florida International University.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Maravai LifeSciences

Maravai LifeSciences was formed in March 2014 as a partnership between Carl Hull and Eric Tardif and GTCR. Maravai’s mission is to build a transformative company in the in vitro diagnostics and life sciences tools markets by acquiring outstanding businesses in these spaces and accelerating their growth.

Location: San Diego, CA

Phone: 858.815.9226

Initial Investment: 03/18/2014

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Carl Hull

Carl Hull is a proven industry leader, with over 30 years of experience in the diagnostics and life sciences industries. Having spent 14 years at Abbott Laboratories in a variety of sales, marketing and general management positions, Mr. Hull then took on leadership roles at Ventana Medical Systems (acquired by Roche) and Applied Biosystems (now part of Thermo Fisher Scientific).

In 2007, Mr. Hull was recruited to join Gen-Probe as part of a board-directed succession plan for the CEO. Mr. Hull took over as CEO in 2009 and focused the strategy of the company to take advantage of its core molecular diagnostics and automation strengths. By introducing highly innovative molecular diagnostic systems and novel screening assays, the company extended its leadership position in a rapidly growing segment of diagnostics. Gen-Probe was sold to Hologic in 2012.

Mr. Hull holds a BA from The Johns Hopkins University and an MBA from the University of Chicago.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Rx30

Rx30 is a leading developer and supplier of pharmacy-management software solutions to the independent, hospital, long-term care and specialty pharmacy markets across the United States, Mexico and the Caribbean. Rx30 offers a suite of market-leading software solutions to enable insurance claims processing, e-prescription connectivity, pharmacy workflow management and other critical functions for its pharmacist customers.

Location: Ocoee, FL

Phone: 800.289.7930

Initial Investment: 06/15/2015

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Steve Wubker

Steve Wubker has served as president and chief executive officer of Rx30 since 2003. Under Mr. Wubker's leadership, Rx30 has grown into an industry-leading pharmacy management platform and has expanded its customer base significantly. Mr. Wubker originally joined Rx30 in 2000, and prior to that held sales-leadership roles with Footmaxx, Medical Specialties Distributors and Medex. Mr. Wubker earned a BBA in general business from Southern Methodist University.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Sterigenics International

Sterigenics International is a global provider of contract sterilization and ionization services for medical devices, food safety and advanced applications. Headquartered in Deerfield, Illinois, Sterigenics is the sole provider of technology in all leading sterilization modalities, including gamma, ethylene oxide, electron beam and X-ray. The company has more than 1,300 employees and operates 38 service centers across North America, Europe and Asia.

Location: Deerfield, IL

Phone: 847.607.6060

Initial Investment: 03/25/2011

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Michael Mulhern

Michael Mulhern serves as chairman and CEO of Sterigenics International. Previously, Mr. Mulhern served as chairman and CEO for two other GTCR portfolio companies: Fairmount Food Group, LLC and American Sanitary LLC. Prior to that, Mr. Mulhern was a senior executive with Alliant Foodservice, Inc. and Baxter Healthcare Corp. Mr. Mulhern has a BA in economics from Pennsylvania State University.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

TerSera Therapeutics

TerSera Therapeutics was formed in March 2016 as a partnership between Ed Fiorentino and GTCR. TerSera aims to build a leading specialty pharmaceutical company through the acquisition of pharmaceutical companies and products, and is focused on therapeutics to improve patient outcomes.

Location: Lake Forest, IL

Initial Investment: 03/2016

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Ed Fiorentino

Ed Fiorentino serves as Chairman and Chief Executive Officer of TerSera Therapeutics. TerSera is the third Leaders Strategy™ partnership between GTCR and Mr. Fiorentino. Previously, Mr. Fiorentino was Chairman and Chief Executive Officer of Crealta Pharmaceuticals, a GTCR-funded specialty pharmaceutical company that was acquired in January 2016 by Horizon Pharma plc. Through organic growth initiatives and four transactions, Crealta built a unique specialty pharmaceutical company focused on niche therapeutic markets within rheumatology and the central nervous system (CNS).

 

Prior to his role at Crealta, Mr. Fiorentino was the Chief Executive Officer of Actient Pharmaceuticals, a specialty pharmaceutical company established in partnership with GTCR. In less than three years, Actient completed five proprietary acquisitions and built a unique, diversified portfolio of commercial products and pipeline assets focused on the treatment of urological indications before ultimately being acquired by Auxilium Pharmaceuticals. Prior to Actient, Mr. Fiorentino was a senior executive and 22-year veteran of Abbott Laboratories.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

XIFIN

XIFIN is a leading provider of cloud-based software and services to diagnostic service providers. XIFIN’s technology platform enables end-to-end connectivity from patient to payor, linking together the many stakeholders in healthcare delivery and optimizing for the best business and patient outcomes.

Location: San Diego, CA

Phone: 858.436.2995

Initial Investment: 07/29/2014

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Lâle White

Lâle White is a nationally recognized expert in the field of medical financial management and regulatory compliance, with over 25 years of experience in information systems development and medical billing. She lectures extensively on these topics and has consulted for major laboratories and laboratory associations throughout the U.S.

She worked with HCFA and the U.S. Office of the Inspector General to develop the first OIG model compliance program. Ms. White was previously vice president of finance of Laboratory Corporation of America (NYSE:LH), one of the largest clinical reference laboratories in the U.S., and its predecessor, National Health Laboratories (NYSE:NHLI), where she led the software development of several accounts receivable, inventory, cost accounting and financial management systems for the laboratory industry.

Ms. White has a BA in finance and an MBA from Florida International University.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes.Click to proceed Leadership case study
Actient Pharmaceuticals: Building a Diversified Portfolio Through Proprietary Acquisitions
Ed Fiorentino  |  Actient Pharmaceuticals

Actient Pharmaceuticals was a management partnership formed with Ed Fiorentino, a former senior executive at Abbott Laboratories, to acquire specialty pharmaceutical companies and products as part of GTCR’s Leaders Strategy™. In less than three years, Actient completed five proprietary acquisitions and built a unique, diversified portfolio of commercial products and pipeline assets focused on the treatment of urological indications.

Actient was formed in 2009 based on GTCR’s thesis that the pharmaceutical industry was an attractive area for investment given several positive trends, including an aging population, increasing availability of drugs for new indications and increasing prescription drug coverage. In addition, near-term growth challenges among mid- and large-cap pharmaceutical companies resulted in significant industry consolidation, leading to product divestitures as these companies attempted to re-prioritize their portfolios and shed non-core assets.

Based on Mr. Fiorentino’s industry experience at Abbott, we believed Actient was well positioned to evaluate these attractive divestiture opportunities and ultimately build a leading specialty business through acquisitions of marketed products and companies. The Actient strategy focused on acquiring undermanaged products, thereby creating an opportunity to grow and preserve these assets through targeted promotion strategies and life cycle management programs.

In July 2010, Actient closed its first proprietary transaction, a corporate carve-out of six on-market products from UCB Pharma. The transaction provided Actient with a strategic asset in the urology space and an opportunity to establish a commercial platform with stable cash flows that could be leveraged through additional acquisitions.

In January 2011, Actient acquired Timm Medical Technologies, a leader in urology medical devices. The acquisition of Timm enabled Actient to expand its urology presence by offering both pharmaceutical and medical device solutions.

In April 2011, Actient followed up the Timm deal with the acquisition of the product Striant (testosterone buccal system), a small but strategic deal consistent with Actient’s focus in urology.

In December 2011, Actient completed the transformative acquisition of Slate Pharmaceuticals, adding the product Testopel (testosterone pellets for implantation), one of the fastest-growing products in one of the fastest-growing segments of the pharmaceutical industry. The acquisition complemented Actient’s strategic focus, broadening the portfolio of leading products marketed to urologists.

Six months later, in June 2012, Actient acquired Bartor Pharmacal. The Bartor acquisition helped to secure the manufacturing of Testopel and reduce cost of goods sold.

In less than three years, through five proprietary acquisitions and organic growth, we believe Actient became one of the fastest-growing pharmaceutical companies. The management team faced a number of challenges in building the company, ranging from sourcing and completing acquisitions to manufacturing and growing sales of its products. The team proved to be highly effective in building the business, hiring key managers and building a sales force.

Actient was acquired by Auxilium Pharmaceuticals in April 2013.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes.Click to proceed Leadership case study
Cord Blood Registry: Investing in Life Sciences
Geoff Crouse  |  Cord Blood Registry

In the late 2000’s, in an effort to expand the firm’s domain expertise in the healthcare industry, GTCR began to dedicate significant time and resources towards evaluating investment opportunities in the life sciences sector. Much like the pharmaceutical sector, GTCR identified life sciences as an attractive area for investment given its significant market size, compelling industry dynamics and strong growth outlook. The firm’s proactive effort eventually led to a relationship with Geoff Crouse, a life sciences industry veteran with prior experience at Roche, Millipore and Immucor. GTCR began formally working with Mr. Crouse in 2011, evaluating numerous potential investment opportunities before identifying stem cell cryopreservation and storage as an attractive, niche sub-segment within life sciences. As a result, in October of 2011, we began to engage in discussions with the founder and CEO of Cord Blood Registry (“CBR”) on a proprietary basis about a potential transaction. Nearly one year later, in September of 2012, GTCR acquired CBR. As part of the transaction, Mr. Crouse assumed the role of CEO and the founder transitioned to a Board role.

Founded in 1992, CBR is a market leader in the collection, processing and storage of umbilical cord blood and tissue stem cells, enabling families to preserve these cells for potential future use by a child or a related family member. Cord blood stem cells have well-established medical applications in a range of diseases, including blood cancers that required regenerating healthy blood and immune cells after chemotherapy. In addition, stem cells derived from cord blood and cord tissue have demonstrated therapeutic potential in experimental treatments for regenerative medicine applications, such as brain injury, cerebral palsy and hearing loss. CBR is dedicated to supporting the clinical application of cord blood and cord tissue stem cells by partnering with institutions to establish FDA-regulated clinical trials for conditions that had no known cure.

CBR’s attractive commercial model – comprised of an upfront processing fee and long-term annual storage fees – provides strong revenue visibility and recurring cash flow, with minimal customer attrition. The investment thesis in CBR was based on GTCR’s belief that the company was well positioned to drive continued profitable growth of the installed base and benefit from the compounding of long-term storage revenue.

During GTCR’s ownership, the firm worked with Mr. Crouse to recruit a senior management team, transform the digital marketing strategy and build upon CBR’s commercial leadership position. By further refining CBR’s sales and marketing infrastructure, CBR enabled more effective communication with expecting families and OB/GYN physicians, thereby enhancing the consumer health and maternal health brands.

GTCR and Mr. Crouse grew the CBR installed base to over 600,000 units, and reached an important milestone – helping more than 300 families use their cord blood stem cells for established and experimental medical treatments. In addition, CBR invested resources to expand the potential scope of newborn stem cell therapies for availability to patients and their families through FDA regulated clinical trials.

In July of 2015, CBR entered into an agreement to be acquired by AMAG Pharmaceuticals, a publicly-traded specialty pharmaceutical company, as part of a strategy to build its maternal health business.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes.Click to proceed Leadership case study
Devicor: Building A Global Med Tech Business to Advance Women’s Health
Tom Daulton  |  Devicor Medical Products

Devicor Medical Products was a Leaders Strategy™ partnership formed with Tom Daulton, a former executive at Cardinal Health (NYSE: CAH), to acquire medical device companies and products. Over the course of four years, Devicor orchestrated a complex carve-out from Johnson & Johnson (NYSE: JNJ) and executed several strategic add-ons to build a global med tech business focused on women’s health. The company’s commitment toward advancing technology to help clinicians accurately diagnose breast cancer through minimally invasive procedures ultimately generated strategic interest, which led to its sale to Danaher in December 2014.

Devicor was formed in 2008 after closely collaborating with Mr. Daulton around a thesis to pursue acquisitions in the medical devices industry segment, with a particular strategy to target interventional hospital procedures. Mr. Daulton was previously a member of Cardinal’s Global Leadership Team, and was responsible for the Interventional Specialties and MedSystems divisions, both fast-growing interventional product businesses. Together, GTCR and Mr. Daulton saw an opportunity to pursue acquisition opportunities and build a scale med tech player in this attractive industry segment. In developing the Devicor investment thesis, GTCR was able to leverage its healthcare domain expertise established over the past 30 years.

In 2010, Devicor completed its initial platform acquisition with the successful corporate carve-out of the Mammotome breast care business from Johnson & Johnson. Through the complex, two-year carve-out, Devicor built dedicated manufacturing, transitioned the commercial business in more than 50 countries, secured new regulatory permits in several geographies and reinvested heavily in new product research and development. As a result, Devicor was able to create a standalone, fully integrated, global medical device business and was able to leverage its commercial platform to complete several complementary add-on acquisitions.

In October 2014, Devicor announced an agreement to sell to Danaher Corporation’s (NYSE: DHR) Leica Biosystems, a leading provider of anatomical pathology solutions and automation used to advance cancer diagnostics.

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HealthSpring: Seeing Advantage in Medicare Advantage
Herbert Fritch  |  HealthSpring

In 2003, Congress enacted the Medicare Modernization Act (“MMA”), the first significant piece of healthcare legislation since the Balanced Budget Amendment of 1997 (“BBA”). Looking to leverage GTCR’s deep experience in managed healthcare services, we targeted healthcare industry niches that would benefit from the MMA legislation and identified privately sponsored Medicare Advantage (“MA”) plans as one such area. While the BBA had significantly cut reimbursement to these plans in 1997, the MMA restored reimbursement in a number of ways that encouraged private plans to provide attractive options to seniors. At that time, officials at CMS, the federal healthcare regulatory agency, were supporting the continued privatization of Medicare, and we believed well-managed healthcare companies in the MA industry would enjoy strong growth and profitability over the ensuing years.

During 2004, GTCR searched for an industry leader with whom to capitalize on this attractive growth opportunity. Our work led us to Herbert Fritch, the founder and CEO of HealthSpring (formerly NewQuest), a private, rapidly growing MA and commercial health plan company. GTCR believed that Mr. Fritch was one of the most talented and knowledgeable executives in the MA industry and that HealthSpring was a strong industry platform, managing higher-quality patient care at lower costs.

In addition to Mr. Fritch’s strong leadership and the quality of his team, we found the HealthSpring platform to be attractive for several other reasons. First, HealthSpring’s presence in four states provided both a diversified membership base and the opportunity to expand into adjacent markets. Second, HealthSpring’s strong focus on healthcare physician partnerships aligned economic incentives and helped drive high-quality patient care. Finally, HealthSpring’s evidence-based disease-management programs enabled the company to provide better healthcare on a more cost-effective basis.

In March 2005, GTCR partnered with Mr. Fritch to recapitalize HealthSpring, acquiring a majority stake in the company. We worked closely with Mr. Fritch to transform the business operationally, adding key senior managers to the team (including Kevin McNamara as CFO), helping to identify geographic expansion opportunities and winding down the company’s commercial health plan business. Collectively, these efforts enabled Mr. Fritch and his team to manage the rapid MA membership growth more smoothly and to prepare for a potential public offering.

Within GTCR’s first year of ownership, HealthSpring’s MA membership had increased by nearly 60%. GTCR worked closely with management to evaluate strategic alternatives and determined that a public offering would facilitate the company’s acquisition-related growth plans. HealthSpring completed an IPO in February 2006.

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Ovation Pharmaceuticals: Finding Healthy Profits in Healthcare
Wilbur (Bill) Gantz and Jeff Aronin  |  Ovation Pharmaceuticals

Building on the firm’s expertise and track record of success in the healthcare sector, GTCR focused on the specialty pharmaceutical industry in the late 1990s. GTCR strongly believed the specialty pharmaceutical industry was poised for significant secular growth and offered an opportunity to establish an attractive, recurring revenue business through the acquisition of products with FDA market exclusivity, intellectual property protection and other attractive attributes. At this time, M&A activity in the pharmaceutical industry was robust. After a wave of large pharmaceutical mergers in the 1990s, many large diversified pharmaceutical companies were rationalizing their drug portfolios, selling small, non-core drugs servicing niche markets. This trend increased acquisition and in-licensing opportunities for smaller specialty pharmaceutical companies. At the same time, many mid-sized and large pharmaceutical companies had significant cash balances and were willing to pay full value for mid-sized specialty pharmaceutical businesses. Of particular interest were those businesses well positioned in key therapeutic focus areas, possessing both attractive on-market and development-stage drugs to drive future growth.

GTCR knew that building deep domain expertise and partnering with talented management leaders were critical to investing successfully in the pharmaceutical industry. We spent several years proactively researching and networking within the pharmaceutical industry. Two exceptional leaders rose to the top: Wilbur (Bill) Gantz and Jeff Aronin. In 2002, GTCR partnered with these leaders to build Ovation Pharmaceuticals, a specialty pharmaceutical company based in Deerfield, Illinois. Mr. Gantz (Chairman of Ovation) was previously the President of Baxter International Inc. and Chairman and CEO of PathoGenesis Corporation, a company he founded, built and successfully sold. Mr. Aronin (founder, CEO and President of Ovation) was previously CEO of two successful venture-backed healthcare companies and a Sales and Marketing Executive with American Health Products and Carter-Wallace.

Ovation and GTCR focused primarily on acquiring on-market and development-stage drugs in the therapeutic areas of neurology, hematology and oncology. Many of these products targeted orphan indications, i.e., small patient populations with a high unmet medical need. Ovation made eight acquisitions from 2002 to 2006, largely carving out products from major pharmaceutical companies. Mr. Gantz and Mr. Aronin strategically transformed the compounds purchased into a standalone, fully functional specialty pharmaceutical company with a dedicated sales force targeting specific prescribers, a strong product development group and a regulatory function that worked very effectively with the FDA. One of the acquisitions included the purchase of the North American rights to two development-stage neurology drugs, Sabril and Frisium, in 2004. The subsequent development and FDA approval of Sabril in 2009 was a substantial value driver for Ovation in its eventual sale.

Ovation made several additional neurology acquisitions, further transforming the company. Most importantly, Ovation acquired the U.S. commercial rights to Xenazine, the first drug approved in the U.S. for the treatment of chorea, a debilitating movement disorder associated with Huntington’s disease. Ovation successfully leveraged its neurology sales force to launch Xenazine in the U.S. and further establish its credibility and critical mass as a neurology specialty company.

Overall from 2002 to 2009, GTCR and its management partners at Ovation strategically transformed 10 separate acquisitions of pharmaceutical assets into a neurology-focused biopharmaceutical company with an excellent commercial platform and a portfolio of clinically unique drugs targeting largely unmet medical needs. In February 2009, after a robust sale process, Ovation announced an agreement to sell the company to Lundbeck, an international pharmaceutical company.

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Leadership case studies are for Management Leaders only and should not be used for investment purposes.Click to proceed Leadership case study
Province Healthcare/Capella Healthcare: Providing Success Through Providing Healthcare
Martin Rash  |  Province Healthcare/Capella Healthcare

In the mid-1990s, GTCR’s research in the acute-care hospital sector led us to the view that non-urban hospital owners (particularly municipalities and not-for-profit organizations) would struggle with the rapid changes in the healthcare industry. We developed the thesis that an operationally focused management team could create significant value by driving revenues and profitability at undermanaged hospitals. Our private equity firm’s extensive search for an acute-care hospital executive with whom to partner led us to Martin Rash, the COO of Community Health Systems. During Mr. Rash’s 10 years with Community Health Systems, the company had grown to 40 hospitals. In 1996, GTCR and Mr. Rash agreed to form Province Healthcare, a management start-up targeting the non-urban hospital sector.

Over the following two years, our private equity firm worked closely with Mr. Rash and his team to identify and acquire undermanaged hospitals. Together, GTCR and management transformed the operations of the acquired healthcare facilities by reducing costs, driving revenue growth and integrating eight hospitals into a centrally managed, high-performing company. In 1998, Province Healthcare completed an IPO.

During the ensuing six years, GTCR remained active on the board of directors of Province Healthcare. In particular, our private equity firm worked closely with Mr. Rash to recruit Dan Slipkovich to Province Healthcare as its COO and Mr. Rash’s likely successor. Together, Mr. Rash and Mr. Slipkovich continued to build value at Province Healthcare, acquiring 13 additional hospitals and continuing to improve operating performance. In 2005, LifePoint Hospitals, another publicly traded acute-care hospital company, acquired Province Healthcare.

Following the sale, our private equity firm explored the possibility of re-entering the industry. The opportunity to drive revenue growth and increase profitability at undermanaged hospitals continued to exist, and we committed to a second effort in the sector. GTCR chose to partner with Mr. Slipkovich, who had played a prominent role in the success of Province Healthcare. In late 2005, GTCR and Mr. Slipkovich agreed to formalize a new management start-up called Capella Healthcare, again targeting the non-urban acute-care hospital sector. Several of the senior members of Mr. Slipkovich’s team from Province Healthcare joined the Capella Healthcare management team.

Capella Healthcare, a GTCR portfolio company, acquired its first four hospitals in late 2005. Capella Healthcare has since grown to 13 hospitals, making Capella Healthcare the ninth-largest for-profit hospital operator in the country.

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Sterigenics: Transformation Through Organic Growth and Strategic Acquisitions
Michael Mulhern  |  Sterigenics International

As a result of GTCR’s history of investing in outsourced business services, combined with the firm’s proactive efforts and domain expertise in the medical device industry, GTCR has pursued businesses that provide specialized services essential to the manufacture and marketing of healthcare products. GTCR identified contract sterilization as an attractive industry that exhibited a range of favorable attributes, including a market structure with underlying volume and pricing growth and attractive margins.

In 2011, the firm pursued and eventually acquired Sterigenics, the leading global provider of contract sterilization services to the medical device industry, operating 38 facilities across North America, Europe and Asia. Sterigenics offered all three major sterilization modalities and a full suite of value-add services across its broad network of strategically-located facilities. Sterigenics also had a strong reputation for providing high-quality, cost-effective and customized solutions. Based on extensive diligence, GTCR believed that Sterigenics was well positioned to capitalize on consistent industry growth fueled by increasing med tech procedure volumes and continued outsourced sterilization trends.

As part of the Sterigenics transaction, GTCR partnered with Michael Mulhern, who joined as CEO shortly after closing. Together, GTCR and Mr. Mulhern identified several initiatives to improve Sterigenics’ operational and growth initiatives, enhance its market leadership and drive incremental earnings growth. Michael added key management, upgraded systems and SOPs and methodically optimized customer contracting and facility utilization to expand capacity, unit economics and quality standards.

In addition to organic initiatives, GTCR and management also strategically repositioned the business through three acquisitions, including two sterilization facility add-ons and the transformative acquisition of Nordion, a key supplier to Sterigenics. Nordion was a global science company providing radioactive cobalt used for gamma sterilization of medical devices and a portfolio of medical isotopes for clinical use in healthcare facilities. The vertical integration of Nordion secured the supply of a critical raw material to Sterigenics sterilization services, and the facility acquisitions broadened the Company’s geographic footprint.

After completing the acquisition and integration of Nordion, GTCR began to assess various strategic alternatives. In May 2015, the firm completed a recapitalization of the business with Warburg Pincus, a global private equity firm. GTCR is excited to remain in partnership with Michael Mulhern and the senior management team to execute against the Company’s future initiatives.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
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