Gastro Health Acquisition & Valuation

Gastro Health was acquired by Penfund and OMERS for $900M in July 2021.

Gastro Health Overview

About Gastro Health

Gastro Health is a Miami-based physician-practice support platform founded in 2006. It partners with gastroenterology medical groups and supports the diagnosis and treatment of digestive disorders. Affiliated clinicians provide consultations, colonoscopy, endoscopy, nutrition and related ancillary services through outpatient practices and procedure centers. Revenue is generated from reimbursed clinical services under commercial insurance, government programs and patient payments. At OMERS' 2021 acquisition, the platform supported more than 250 physicians across Alabama, Florida, Maryland, Ohio, Virginia and Washington. The company maintains physician participation while centralizing administrative, operational and growth functions. OMERS acquired the business from Audax and used Penfund financing that included a small equity component, making the event a buyout rather than the venture round currently recorded.


Founded

2006

HQ

United StatesMiami, FL

Status

Acquired

Customer focus

B2C

Revenue model

Services

Valuation

$900M (acquired Jul 2021)

Gastro Health Acquisition

Gastro Health was acquired by Penfund and OMERS for $900M on 1 July 2021.

Gastro Health is a leading gastroenterology platform in the United States, headquartered in Miami, Florida, supporting practices in multiple states including Florida, Alabama, Maryland, Ohio, Virginia, and Washington. The company employs over 250 physicians and offers core GI procedures such as colonoscopies and endoscopies, along with ancillary services. In July 2021, Penfund led a US$90 million second lien credit facility and invested US$10 million in equity to support OMERS Private Equity's acquisition of Gastro Health from Audax Private Equity at a $900 million valuation. This transaction positioned Gastro Health for growth through its cohesive physician partnership model. Post-acquisition, Gastro Health expanded aggressively, adding practices in Virginia, Florida, Ohio, Maryland, and Massachusetts, and growing to over 400 physicians across 150 locations by supporting further market penetration in gastroenterology services.

Gastro Health acquisition details
AcquirerDateTypePrice
  • Penfund
  • OMERS
1 Jul 2021PE buyout$900M

Sources: omersprivateequity.com, omersprivateequity.com

Acquisitions by Gastro Health

Gastro Health has acquired 8 companies to date.

Last acquisition by Gastro Health was on March 1st 2021. Gastro Health acquired Digestive Disease Associates for undisclosed valuation.


Latest Acquisitions by Gastro Health

Digestive Disease Associates
Associates in Gastroenterology, P.C.
Gastroenterology Associates of Northern Virginia
Puget Sound Gastroenterology
Description
Digestive Disease Associates is a medical practice specializing in gastroenterology and hepatology services. It treats disorders of the stomach, intestines, and liver through diagnostic procedures, endoscopy, and therapeutic interventions. The Annapolis-based group expands its offerings with patient education programs and preventive care initiatives across Maryland facilities.
Associates in Gastroenterology, P.C. is a gastroenterology practice based in Mobile, Alabama. Five physicians provide colonoscopy screenings, endoscopy for GERD and ulcers, and treatment for IBD, hepatitis, and liver disease at clinics and affiliated hospitals like USA Health. The group offers infusion therapy for Crohn's disease and participates in clinical research trials for motility disorders.
Gastroenterology Associates of Northern Virginia is a multispecialty physician group delivering comprehensive gastroenterology services across Fairfax, Haymarket, and Prince William counties in Virginia. The practice offers diagnostic procedures such as colonoscopies, endoscopies, capsule endoscopy, and treatments for conditions including acid reflux, irritable bowel syndrome, inflammatory bowel disease, and liver disorders. Operating from six office locations and two ambulatory surgery centers, the group emphasizes patient-centered care with board-certified gastroenterologists and hepatologists.
Puget Sound Gastroenterology is a Seattle-based medical practice offering diagnostic endoscopy, colonoscopy, advanced therapeutic procedures, and treatment for conditions like inflammatory bowel disease and liver disorders. The group operates clinics in Kirkland, Issaquah, and downtown Seattle, with physicians affiliated to Virginia Mason Franciscan Health and Overlake Medical Center. Services extend to capsule endoscopy and ERCP for Puget Sound area patients referred by primary care providers.
HQ CountryUnited StatesUnited StatesUnited StatesUnited States
HQ City
Baltimore, MD
-
Washington, DC
Seattle, WA
Deal Date1 Mar 20211 Oct 202015 Nov 201923 Sep 2019
Valuationundisclosedundisclosedundisclosedundisclosed
EV/Revenue
EV/EBITDA

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Gastro Health Competitors

Gastro Health competitors include listed companies like Terveystalo, Clinica Baviera, Al Hammadi Holding and Thomson Medical, and private ones like Radiant Life Care Private Ltd and Hospitales MAC.

Public and private companies comparable to Gastro Health
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
TerveystaloFinlandFinlandPublicly listed$1.4B$259M$885M1.2x
Clinica BavieraSpainSpainPublicly listed$338M$95M$923M2.4x
Al Hammadi HoldingSaudi ArabiaSaudi ArabiaPublicly listed$329M$98M$934M2.8x
Thomson MedicalSingaporeSingaporePublicly listed$328M$53M$951M5.3x
Radiant Life Care Private LtdIndiaMumbaiPrivate$64M$11M$816M12.8x
Hospitales MACMexicoPueblaPrivate$279M-$773M2.8x
Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Terveystalo$1.4B$259M1.1x1.2x6.2x6.6x
Clinica Baviera$338M$95M2.6x2.4x9.2x8.4x
Al Hammadi Holding$329M$98M3.0x2.8x10.2x10.9x
Thomson Medical$328M$53M5.5x5.3x34.4x26.0x
HealthCare Global Enterprises$268M$45M4.2x3.8x24.7x20.1x
Dr. Sulaiman Al Habib Medical Services$410M$110M2.5x-9.4x-
Infracore$29K-36748.3x---
Mitra Keluarga$296M$113M3.0x2.8x7.9x7.4x

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Common questions about Gastro Health

When was Gastro Health founded?Gastro Health was founded in 2006.
Where is Gastro Health headquartered?Gastro Health is headquartered in Miami, FL, United States.
Is Gastro Health publicly listed?No, Gastro Health was acquired by Penfund and OMERS in July 2021.
Who acquired Gastro Health?Gastro Health was acquired by Penfund and OMERS in July 2021.
How much was Gastro Health acquired for?Gastro Health was acquired for $900M in July 2021.
Which companies are comparable to Gastro Health?Companies comparable to Gastro Health include Terveystalo, Clinica Baviera, Al Hammadi Holding, Thomson Medical, Radiant Life Care Private Ltd and Hospitales MAC.
How many companies has Gastro Health acquired?Gastro Health has acquired 8 companies, including Digestive Disease Associates, Associates in Gastroenterology, P.C., Gastroenterology Associates of Northern Virginia, Puget Sound Gastroenterology and Southeast Gastro.

See companies similar to Gastro Health

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