- Merger Creates Leading Dermatology Practice with Operations Across
Southwest U.S. - Combined Organization to Benefit from Enhanced Group of Elite Physicians, Operational Synergies, Increased Scale, Elevated Patient Care
June 21, 2022 –BOCA RATON, Fla. and CHICAGO –Sun Capital Partners (“Sun Capital”), a leading healthcare services investor, and Sterling Partners (“Sterling”), a diversified investment management platform, today announced the merger of Sun Capital portfolio company West Dermatology (“WestDerm”) and Sterling portfolio company Platinum Dermatology Partners (“Platinum”). Terms of the transaction were not disclosed.
The combination of WestDerm, a group providing business support services to over 300 dermatology providers, including many of the most prominent dermatologists in the Western United States, and Platinum, a dermatology group practice organization with a strong presence among many of the leading physicians in the fast-growing Texas and Arizona markets, creates a clear industry leader with more than 100 locations spanning the Southwestern U.S. and Southern California.
“We are very excited by the opportunity to bring together two leading dermatology organizations highly focused on clinical excellence, with strong cultural and geographic synergies,” said Daniel Florian, Managing Director at Sun Capital. “Merging with Platinum will allow WestDerm to continue to accelerate its expansion, grow its footprint, and expand patient care. We expect the combined platform to lead the industry in clinical excellence, create the most attractive platform for dermatologists to partner with, and deliver the best patient care in dermatology.”
“It has been a privilege to be involved in Platinum’s growth story,” said Steven Taslitz, Co-Founder and Chairman at Sterling Partners. “We’re thrilled to have Platinum partner with WestDerm, and together continue their proven track records of excellence in this industry. We look forward to seeing the company’s continued growth and future successes.”
Founded in 1962 and headquartered in Newport Beach, California, WestDerm is a rapidly growing practice management group focused exclusively on dermatology. Acquired by an affiliate of Sun Capital in February 2020, WestDerm provides administrative support and a dynamic clinical community for some of the most pre-eminent providers in the Western U.S. offering cosmetic, surgical, and medical dermatology services for many skin conditions, cancer prevention, and remediation.
Formed by a partnership between Sterling Partners and Dallas Associated Dermatologists in 2016, Platinum benefited from Sterling’s resources, capital, and years of experience in healthcare services. Over the last six years, Platinum welcomed multiple practices into its network resulting in significant growth, particularly in the Dallas/Fort Worth and Phoenix markets.
“Sterling’s constant support, operational expertise, and industry connections allowed us to successfully achieve the growth vision we had with them when we started our partnership. We look forward to our continued growth as we partner with the team at WestDerm, who bring unique strengths and capabilities to our expanding network,” said Michael Pennington, Co-Founder and President of Platinum Dermatology Partners.
“We look forward to partnering with Platinum. We’re excited to leverage our combined expertise and market presence to explore new growth opportunities and enhance our service offerings to bring world-class care to more patients,” said Brian Stern, CEO of WestDerm.
Sun Capital and WestDerm were represented by Cantor Fitzgerald, Edgemont Partners, and Kirkland & Ellis in the transaction, while Sterling and Platinum were represented by Houlihan Lokey, McDermott, Will & Emery, and Katten Muchin Rosenman.
