Cortec Group has acquired Community Veterinary Partners LLC via recapitalization. Financial terms weren't announced. Philadelphia-based Community Veterinary Partners manages a network of veterinary hospitals located predominantly in the northeastern U.S. Piper Jaffray served as financial advisor to CVP.
PRESS RELEASE
(New York, NY) – Cortec Group ("Cortec"), a New York private equity firm which invests in middle market healthcare, specialty service, consumer, and distribution businesses, announced that on October 30, 2015, a group led by its affiliate, Cortec Group Fund V, L.P. ("Cortec Fund V"), in partnership with management, recapitalized Community Veterinary Partners, LLC ("CVP" or the "Company"). Terms of the transaction were not disclosed.
Headquartered in Philadelphia, PA, CVP manages a network of veterinary hospitals located predominantly in the northeastern U.S. CVP was founded in 2009 with the goal of supporting veterinarians who provide great clinical medicine and benefit from general business tools to manage and grow their hospitals. To enhance their operations, CVP hospitals are provided access to various resources in the areas of marketing, leadership development, finance, and human resources. Importantly, local medical leaders retain all clinical decision-making authority. CVP's mission is to provide operational support to its hospitals, enabling veterinarians to focus on practicing medicine and providing high quality pet and animal care.
"We believe CVP's model of partnering with veterinarians and focus on the delivery of high quality medical services has proven to be a key differentiator in the market. CVP's successful track record of attracting leading regional veterinarians to its network speaks for itself," said Jeffrey Lipsitz, a Managing Partner at Cortec. "We are excited about the path forward. In partnership with Cortec, CVP will now have the resources needed to support management's ambitious plans to expand the network's footprint throughout the Eastern U.S.", added Jeffrey Shannon, a Cortec Partner.
Daniel Eisenstadt, CVP's co-founder and Chairman, who together with co-founder Michael Raphael will continue to drive the growth of CVP while retaining significant ownership, commented that, "Cortec is an ideal partner for CVP, given their investment experience in healthcare and multi-site businesses and strong track record of helping founder-owned businesses achieve their next level of growth." Raphael further stated that, "Cortec also shares CVP's commitment to supporting veterinarians and maintaining the culture and standard of care of our growing group of practices." Fali Sidhva, CVP's President and Chief Operating Officer, added, "We look forward to building on the growth our company has enjoyed. Our entire management team is enthusiastic about the capabilities that Cortec brings to CVP to continue that expansion trend while providing added support to our partner hospitals."
The CVP acquisition represents Cortec Fund V's eighth and final platform investment. Cortec is now making new platform investments out of Cortec Fund VI, a $1.1 billion fund that closed in May 2015.
Piper Jaffray served as financial advisor to CVP.
About CVP
CVP manages 17 veterinary hospitals located throughout the northeastern United States. The Company owns hospitals in Pennsylvania (12), New York (2), New Jersey (1), Maryland (1) and Connecticut (1). CVP hospitals have the benefit of accessing various business tools to manage their hospital, while keeping local control of clinical medicine. Please visit www.cvpco.com to learn more.
About Cortec
Founded in 1984, Cortec acquires high value-added, middle-market healthcare, specialty service, consumer, and distribution businesses from owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.