North American Partners in Anesthesia (NAPA), the largest single specialty anesthesia management company in the United States, and American Securities LLC, a leading middle-market private equity firm, have completed a recapitalization of NAPA’s practice management company, NAPA Management Services Corporation (NMSC). The transaction adds significant growth capacity to NMSC and will fuel the organization’s ability to actively pursue expansion opportunities and grow its leadership position.
“With American Securities as our new partner, NMSC and NAPA are poised to pursue multiple avenues that will extend our excellent clinical capabilities and business model into new healthcare settings and geographies,” said John Di Capua, M.D., CEO of NMSC. “As our organization celebrates its 30th anniversary and looks to the future, the recapitalization reinforces our value proposition as one of the nation’s leading providers of anesthesia and management services.”
Marc L. Saiontz, Managing Director at American Securities noted, “The Company is well positioned for a bright future with a range of exciting growth options. We are delighted to partner with this talented group of clinicians and the entire NMSC team as they move into the next phase of their growth and evolution.”
The recapitalization is the second transaction for NMSC since 2011, when it entered into an agreement with Moelis Capital Partners (MCP), a subsidiary of Moelis Asset Management.
“This transaction is the next logical step in NAPA’s growth, as we’ve helped NAPA grow from 22 hospitals and 5 states in 2011 to 81 hospitals in 11 states today,” commented Ted Yun, Managing Partner, NexPhase, and subadviser to MCP. “There remain tremendous growth opportunities for NAPA. We wish NAPA and American Securities every success in the future.”
Lloyd Straus, President and Chief Operating Officer of NMSC, added, “Over the last five years, the Moelis/NexPhase team has been an outstanding strategic partner, helping us achieve our mutual business objectives. We appreciate their contributions and look forward to an equally fruitful relationship with American Securities.”
McDermott Will & Emery LLP served as legal counsel to NMSC with respect to the transaction, and Weil, Gotshal & Manges LLP served as legal counsel to American Securities. Moelis & Company LLC and Harris Williams & Co. acted as financial advisors to NMSC with respect to the transaction. Affiliates of Leonard Green & Partners made a minority investment in the transaction along with American Securities and NAPA’s management team.
About NexPhase Capital:
NexPhase Capital (NexPhase), formed by the former principals of Moelis Capital Partners, the private equity division of Moelis Asset Management (MAM), is a New York-based private equity firm that targets equity investments between $25 and $75 million in leading middle market, growth-oriented companies. Earlier this year, the former principals of MCP formed NexPhase to execute, on an independent basis, the same sector-focused strategy of controlled investments in lower middle market companies they had successfully executed at MCP. NexPhase continues to manage the MCP funds and portfolio companies under a sub-advisory agreement. NexPhase specializes in the healthcare, industrial services, software and consumer sectors. Led by Co-Managing Partners Kurt Larsen and Ted Yun, the firm will continue to manage approximately $872 million of MCP’s legacy private equity capital. For more information, please visit www.NexPhase.com.
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