GTCR, a leading private equity firm, announced today that it has made a majority investment in PathGroup Holdings LLC in partnership with founder and CEO Ben Davis, MD and the PathGroup management team, who have made a substantial reinvestment in the Company. As part of GTCR’s Leaders Strategy™, Dave King, the former Chairman and CEO of Labcorp, will join the PathGroup Board as Chairman, partnering with Dr. Davis and GTCR to further invest in PathGroup’s capabilities across the pathology, molecular, and genetic diagnostics modalities. Pritzker Private Capital and Vesey Street Capital Partners will also be retaining a minority ownership stake in the Company alongside GTCR and the PathGroup management team.
Based in Nashville, Tennessee, PathGroup is one of the largest independent laboratories in the United States. The Company provides anatomic pathology, digital pathology, molecular diagnostic, and clinical testing services to physician groups and hospital systems across the Southeast and Midwest. PathGroup supports more than 4,000 physician practices and more than 200 hospital customers with diversified lab testing services, high-touch customer service and fast turnaround times.
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GTCR’s investment will support the PathGroup management team as they continue to grow the Company through ongoing investments in the commercial and customer service organizations, organic expansion of the Company’s laboratory footprint into Texas and other geographies, and strategic M&A to expand the Company’s presence and service offerings. GTCR has deep expertise in the healthcare and lab testing industries and will leverage its prior investment history and resources to help support the continued growth of the Company alongside the PathGroup team.
Dr. Davis said “We are thrilled to announce this recapitalization with GTCR as our new majority shareholder and partner. I have known the GTCR team for nearly a decade and we share a common vision and commitment to building PathGroup into a larger, more diversified business that can better serve our providers and their patients.”
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“Dr. Davis and the PathGroup team have done an incredible job of building PathGroup into a unique, scaled lab services business with outstanding clinical services,” said Sean Cunningham, Managing Director and Co-Head of Healthcare at GTCR. “We look forward to supporting the team and expanding the PathGroup platform through organic growth initiatives and additional strategic acquisitions.”
Ben Daverman, Managing Director and Co-Head of Healthcare at GTCR, added: “This represents another example of GTCR executing our unique Leaders StrategyTM investment approach of partnering with outstanding managers to identify opportunities in sectors we have deep experience in. We’ve known Dave King and Ben Davis for a long time and are excited to partner with them and support the Company in its next chapter of growth.”
Latham & Watkins provided legal counsel to GTCR. BofA Securities and Nomura Securities served as financial advisors and Kirkland & Ellis served as legal advisor to PathGroup.
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