Pamlico Capital (“Pamlico”) and the management team of Veterinary Practice Partners, LLC (“VPP” or the “Company”) announced today that Pamlico has completed a recapitalization of the Company. CEO and Founder Rich Lester, along with the rest of the management team, will continue as significant investors in VPP and continue to grow and manage the network of veterinary hospitals partnered with the Company. Detailed terms of the transaction have not been disclosed.
Founded in 2011, VPP is a rapidly expanding veterinary practice management company with a differentiated, co-ownership model that promotes deep ongoing engagement from its veterinary partners and leads to a broader universe of acquisition opportunities. The Company provides its partner clinics with a comprehensive service offering, including marketing, financial reporting and HR management. The company has grown through acquisitions and de novo development to a portfolio of 22 clinics in 10 states and expects to be approximately 28 clinics by year end 2016.
Mr. Lester noted, “The management team at VPP is excited to partner with Pamlico Capital. Their involvement with co-ownership business models, accelerating growth at their portfolio companies, and specific experience in multi-site healthcare, will be invaluable as we look to expand our business.”
Pamlico Partner Scott Perper said, “Pamlico had identified the veterinary services market as an area of focus and was actively seeking an opportunity in the space. We are tremendously impressed with the caliber and breadth of the management team, as well as the opportunity VPP has to capitalize on the favorable trends in the veterinary services market.” Pamlico Principal Brian Chambers added, “VPP is a leading platform with a differentiated co-ownership model. Their existing veterinarian partners praise VPP’s collaborative approach and value-added management services and these strong partner relationships are key to driving growth going forward.” VPP is the eleventh investment in Pamlico Capital III, a fund with $650 million of committed capital.
VPP was advised by Harris Williams & Co (exclusive financial advisor) and Robinson Bradshaw & Hinson, P.A. (legal advisor). Pamlico was advised by Alston & Bird LLP (legal advisor).
Veterinary Practice Partners (VPP) is a trusted business partner to veterinarians. We co-own practices in partnership with veterinarians, and work relentlessly to grow and manage each practice, while retaining its unique identity and culture. VPP’s family of practices has enjoyed industry-leading growth and profitability improvements. Our team has deep experience in driving sustained, above-average revenue growth, cultivating exceptional practice staff, and overseeing back-office operations, including marketing, finance, accounting and human resources. Veterinarians partner with us because we enable them to focus on delivering high-quality patient care and foster lasting relationships with pet owners, while remaining owners in the practices they have committed a lifetime to building. For more information, please visit www.vetpartners.com.
Pamlico Capital is a private equity firm founded in 1988 that primarily invests in growing middle-market companies in the U.S. Pamlico Capital seeks control-oriented growth equity investments of up to $100 million alongside proven management teams in its target industries; business & technology services, communications, and healthcare. Since inception, the firm, based in Charlotte, NC, has invested over $2.5 billion. For additional information, please visit www.pamlicocapital.com.