Hildred Capital Management, LLC (“Hildred”), a New York-based private equity firm, and Gemini Investors (“Gemini”) have completed a majority recapitalization of DermCare Management, LLC and Skin & Beauty Center Management, LLC (collectively referred to as “DermCare” or the “Company”). Gemini, the Company’s previous equity sponsor, will retain a minority stake, as will the Company’s physician group and senior management team. Financial terms of the transaction were not disclosed.
The Company, headquartered in Hollywood, FL, is a leading dermatology practice, with nearly 30 locations across Florida, California and Texas, and offers a full range of clinical, medical, aesthetic and cosmetic dermatology services. DermCare’s current Chief Executive Officer, Jeffrey Schillinger, Chief Financial Officer, Christopher Maffei, and Senior Vice President of Operations, Marc Grad, will continue to lead the Company following the recapitalization.
“We are excited to partner with an outstanding group of dermatologists, many of them highly respected leaders in the field, to build a leading medical organization. We look forward to working closely with Jeffrey and his experienced executive team to further expand the existing DermCare platform. We are delighted with this transaction, and we are enthusiastic about the opportunity to continue improving the dermatological clinical experience for both patients and physicians,” said David Solomon, Managing Partner at Hildred.
“This transaction represents a significant milestone for our Company” said Jeffrey Schillinger. “Hildred is the ideal partner for our business as we look to continue our growth into additional geographies and expand in our existing markets. Hildred has a long history in the healthcare sector, including strong support for high-quality medical care; our partnership will allow us to focus on bringing talented physicians to our platform and execute around providing a best-in-class clinical service offering.”
“We have enjoyed the partnership with Jeffrey and his team over the past several years. Under his leadership, DermCare has built a leading dermatology platform and we are confident in the Company’s ability to continue partnering with leading physicians in the sector. Hildred provides great healthcare expertise and we are excited to partner with them to support the continued growth of DermCare,” said Rob Menn, Managing Director at Gemini.
Deutsche Bank Securities Inc. served as the exclusive financial advisor to DermCare. McDermott Will & Emery and Morgan, Lewis & Bockius advised DermCare in the transaction. Waller Lansden Dortch & Davis and Lowenstein Sandler served as legal advisors to Hildred. In addition, Marwood Group and Crowe served as advisors to Hildred in the transaction. Debt financing for the transaction was provided by Oxford Finance.
Founded in 2017, DermCare Management (https://www.dermcaremgt.com/) is a dermatology-focused physician practice management company, with clinics that provide clinical, cosmetic, and pathology services. DermCare was founded on the principle of merging seasoned medical professionals with clinically focused management expertise. DermCare’s partners are key opinion leaders in dermatology that bring innovation to drive operational excellence.
Hildred Capital Management is a New York-based private equity investment firm that pursues growth equity investments in lower middle market healthcare companies with leading products, technologies and services. Hildred focuses on opportunities to create value from earnings growth, operational improvements and multiple
expansion in companies with revenues of $0 to $100 million. Areas with attractive fundamentals where Hildred may invest include the following healthcare subsectors: healthcare services, consumer products, information technology, medical devices, and pharmaceuticals; including the related industries that surround these healthcare subsectors.
Hildred is managed by David Solomon and Andrew Goldman, who have been working together for the last five years as the Managing Partner and Chief Investment Officer, respectively, of Hildred Capital Partners, LLC (“HCP”). HCP was founded in January 2014 by Howard and David Solomon (former Forest Laboratories Inc. (“Forest”) Chairman and Chief Executive Officer and Senior Vice President, Corporate Development and Strategic Planning, respectively) following the sale of Forest to Actavis plc for over $28 billion.
Gemini Investors is a private equity investor with a focus on the smaller end of the middle market, investing in established companies with experienced management teams and strong growth prospects. Gemini provides both debt and equity capital in either minority ownership or control transactions. Areas of particular investment interest include Business Services, Consumer Products and Services, Healthcare, Later Stage Technology, and Manufacturing and Distribution. Gemini has invested in over 150 different companies throughout the United States since the firm was founded in 1993.
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