OMERS PE Sells Forefront Dermatology to Partners Group

Posted on 02/16/2022

Disclosed on February 10, 2022, OMERS Private Equity signed an agreement to sell its interest in Forefront Dermatology to Partners Group AG, acting on behalf of its clients. As part of the transaction, OMERS as well as Forefront’s physicians and executive team will reinvest in Forefront as minority owners. Located throughout the U.S. East, Midwest, Mid-Atlantic, Southwest, Southeast and West, Forefront Dermatology is the largest physician-led single specialty group providing dermatological services in the United States and comprises over 200 dermatology practices. Founded in 1980 and headquartered in Manitowoc, Wisconsin, the group practice comprises over 400 board-certified dermatologists, physician assistants, and nurse practitioners. Forefront Dermatology will prioritize small practice acquisitions versus transformative deals. In the U.S., dermatology practices are highly profitable as a single physician able to generate upwards of US$ 1 million in revenue.

The transaction values the firm at around US$ 1.5 billion.

Since 2016, OMERS invested in Forefront and has been pleased to support the business as it more than doubled the size of its geographic footprint, practice count and clinician base. With a strong focus on the healthcare segment, OMERS Private Equity’s portfolio of current and past investments in the space includes: Gastro Health, Community Veterinary Partners, CBI Health Group, Paradigm Outcomes, Premise Health, National Veterinary Associates, Accelerated Rehabilitation Centers, and Great Expressions Dental.

The transaction is expected to close in early Q2 2022.

OMERS and Forefront were advised by Harris Williams, Ernst & Young, Sidley Austin and McDermott Will & Emery.

Ropes & Gray and Deutsche Bank advised Partners Group.

Keywords: Ontario Municipal Employees Retirement System.

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