After a banner year for activity in 2019, COVID-19 disrupted private equity investment in the gastroenterology space. Yet activity has resumed as the year winds down to a close.
Do you have thoughts on PE investment in the specialty? Email Eric Oliver at eoliver@beckershealthcare.com.
Here's a breakdown of the eight deals that have closed in 2020 so far:
January: Miami-based Gastro Health acquired Gastroenterology Associates of Osceola in Kissimmee, Fla., Digestive Care in Boca Raton, Fla., and Associates in Gastroenterology in Woodbridge, Va.
March: Dallas-based GI Alliance acquired Gastroenterology Consultants of San Antonio.
April: Private equity firm Webster Equity Partners established One GI, through a partnership with Memphis, Tenn.-based Gastro One.
May: Exton, Pa.-based US Digestive Health expanded its presence in Pennsylvania by partnering with Carlisle (Pa.) Digestive Disease Associates.
July: GI Alliance partnered with Peoria-based Illinois Gastroenterology Institute.
October: Gastro Health partnered with Cincinnati-based Ohio Gastroenterology & Liver Institute and Woodbridge, Va.-based Associates in Gastroenterology in two separate deals, the platform announced Oct. 1.
November: GI Alliance partnered with Hinsdale (Ill.) Gastroenterology Associates and Carl Calandra, DO.
US Digestive Health partnered with West Chester (Pa.) GI Associates.
US Digestive Health also acquired Pottstown Medical Specialists in Royersford, Pa.
GI Alliance partnered with Adult Gastroenterology Associates of Tulsa (Okla.), expanding into Oklahoma.
December 2020: H.I.G. Growth Partners entered into a partnership Dec. 1 with Rochester Hills, Mich.-based The Center for Digestive Health creating Pinnacle GI Partners, a new investment platform in Michigan.
There were several notable developments in 2020:
1. US Digestive Health made its first post-formation acquisition in May and followed that add-on deal with another transaction in November.
2. The longest established platform, Gastro Health, made a pair of deals to grow its market presence away from its home base in Miami, establishing locations in Virginia and Ohio.
3. The largest platform, GI Alliance, continued to build on its largest bases, making add-on transactions in Texas and Illinois.
4. Two new platform was established in 2020: Webster Equity Partners formed One GI, and H.I.G. Growth Partners entered into a partnership with Rochester Hills, Mich.-based The Center for Digestive Health creating Pinnacle GI Partner. Read more on the platforms here and here.