The Company

Pediatria Healthcare, LLC, Norcross, GA: A former MidMark Capital portfolio company.

The Industry

Healthcare services for medically fragile children.

The Situation

Joe Sansone, a seasoned healthcare executive, was looking for a forward-minded partner to form and grow a company in the pediatric healthcare space.  We had recruited Joe to sit on the Board of one of our other healthcare portfolio companies and had developed great respect for his leadership skills and business acumen.  We agreed to provide all of the equity capital his new venture would need to buy existing and build new day treatment centers and private duty nursing offices focused on medically fragile children.

Our Value-Added

Working closely with Joe, we built an industry-leading management team.  We partnered with this team to develop the strategic plan for the business, focusing on the product lines and geographic areas of our expansion.  While we were open to the idea of making acquisitions and, in fact, acquired two small businesses, we quickly determined that the return on investment of expanding through de novo locations was much higher and directed the company’s efforts toward building its own new branches.

The Result

From the company’s origin of a single employee with no revenue, Pediatria grew to 27 locations across nine states with $47 million of revenue and over 1,000 full- and part-time employees. Pediatria became the second largest provider of pediatric day treatment centers in the country.  We sold Pediatria to a large strategic buyer who recognized the value of the company’s scalable business model.