Persistence Capital Partners launched MedSpa Partners through its acquisition of a pair of aesthetic medical dermatology clinics.
In partnership with entrepreneur Dominic Mazzone, the Toronto private equity firm has purchased Cosmedica, of Victoria, British Columbia, and SpaMedica, of Toronto.
Mazonne has been named CEO of the new platform, alongside founding partners and physicians Mark Lupin of Cosmedica and Stephen Mulholland of SpaMedica.
John Trang, who co-heads PCP’s Toronto office alongside Partner Adrianna Czornyj, worked as the lead partner on the MedSpa investment and has been named chairman of the company.
PCP, which invests exclusively in Canadian healthcare companies, is investing out of Fund III, which it is still in the process of raising, the firm’s Managing Partner and Co-Founder Stuart Elman told Buyouts.
PCP has already made two investments out of Fund III: Ottawa-based dental service organization MCA Dental Group and Toronto fertility care provider Anova Fertility & Reproductive Health.
PCP took a controlling stake in MedSpa in connection with the transaction, while selling physicians rolled equity and have remained significant investors, Elman said. The platform has other clinics under letter of intent, he said.
Cosmedica and SpaMedica specialize in high-end dermatology and aesthetic skincare treatments including laser treatments, Botox and other cosmetic surgeries.
PCP found the opportunity to invest in aesthetic dermatology attractive due to its cash-pay reimbursement dynamics and the tremendous consolidation opportunity in Canada, Elman said. Unlike the U.S., Canada’s clinical dermatology segment is paid for under government-sponsored health plans, and is therefore a less attractive vertical for investment, he said.
Stuart Elman founded PCP in 2008 alongside his father, Sheldon Elman, in connection with the firm’s take-private acquisition of Medisys Health Group.
Sheldan Elman founded Medisys in 1981 and remains chairman of the preventative healthcare company, while Stuart Elman worked as both CFO and president of Medisys, ultimately leading its initial IPO on the Toronto Stock Exchange in 2002.
PCP invests in high-growth Canadian healthcare companies generating up to $C15 million in Ebitda.
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