SAN FRANCISCO, Aug. 21 /PRNewswire/ -- Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the healthcare services, life sciences, business services, and industrial technology sectors, today announced the acquisition of OnCURE Medical Corp., one of the nation’s leading operators in the $7 billion radiation therapy industry. Terms of the transaction were not disclosed.
OnCURE Medical, headquartered in Newport Beach, California, owns, operates and manages treatment centers exclusively focused on providing the most state-of-the-art radiation treatment alternatives. OnCURE and its physician partners provide radiation therapy services in 33 free-standing treatment centers in California, where it is the largest provider of these services, and in Florida. OnCURE was founded in 1998 by industry veterans Jeffrey Goffman, President, and Dr. Shyam Paryani, Chairman and Medical Director and is led by Chief Executive Officer Richard Zehner, who prior to joining OnCURE, found and built Alliance Imaging Inc. into a leading publicly-traded company with $430 million in annual revenues.
“This investment in OnCURE is consistent with our strategy of partnering with high quality management teams in industries we know well and it solidifies our investment focus in the healthcare sector,” said Jean-Pierre L. Conte, Chairman and Managing Director of Genstar Capital. “OnCURE is now well-positioned as a platform investment and there are a number of strategic and organic expansion opportunities that we will pursue to further grow the business while, at the same time, identify new ways to provide the highest quality patient care.”
The radiation therapy market in the U.S. is highly fragmented and no single competitor currently operates more than 10% of the radiation therapy centers in the U.S. There are over 2,000 radiation therapy centers in the U.S. with the top three companies owning less than a combined 20% of those centers.
“OnCURE has a successful track record of partnering with physician groups and acquiring and integrating new facilities into its network, and because of the fragmented nature of the industry we will be able to tap into a rich pipeline of opportunities as we execute strategic acquisitions into new geographic regions and existing markets,” said Robert J. Weltman, Managing Director of Genstar. “OnCURE is an industry leader and together with Richard Zehner and his senior management team, we will make the company an even better performer.”
Mr. Zehner said, “OnCURE is an outstanding company whose dedicated team of highly skilled staff and more than 50 affiliated physicians provide excellent clinical standards of care and treatment to almost ten thousand cancer patients each year. There is a growing trend toward outpatient care where high-quality services are provided in patient-friendly environments and we look forward to partnering with Genstar to capitalize on that trend. Genstar has successfully invested in healthcare companies, understands our business model and their experience will be extremely valuable as we seek ways to enhance and broaden our cancer care.”
Previous healthcare investments made by Genstar include Axia Health Management, PRA International, Inc., Harlan Sprague Dawley, Inc., NEN Life Sciences, Inc., and BioSource International, Inc.
About OnCURE
OnCURE owns, operates and manages radiation centers and other HDR & PET/CT units, all located in California and Florida. OnCURE’s centers provide treatment areas and equipment for radiation therapy, including IMRT, IGRT, and PET/CT. OnCURE provides capital, technology, and management expertise to its affiliated physician groups, including clinical management, billing and collection, data warehousing, accounting, compliance and other administrative services. OnCURE has approximately 350 employees. For more information, visit http://www.OnCURE.com.
About Genstar Capital, LLC.
Based in San Francisco, Genstar Capital (http://www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the health care services, life sciences, business services, and industrial technology sectors.
Source: Genstar Capital, LLC
