Houlihan Lokey Advises Platinum Dermatology Partners

Houlihan Lokey is pleased to announce that Platinum Dermatology Partners (Platinum), a portfolio company of Sterling Partners (Sterling), has merged with West Dermatology (West), a portfolio company of Sun Capital Partners (Sun Capital). The transaction closed on June 22, 2022.

Headquartered in Dallas, Texas, Platinum Dermatology Partners builds true partnerships with highly reputable dermatology practices to empower growth and best-in-class dermatology services. In Platinum’s differentiated, physician-centered practice management model, physicians drive clinical care and their practice culture while benefiting from the vast business expertise, resources, and shared best practices available through the Platinum network. As a comprehensive physician management services organization, Platinum offers collaboration among top-notch dermatology professionals and practice growth opportunities unmatched in an independent practice. Formed in 2016, Platinum welcomed multiple practices into its network resulting in significant growth, particularly in the Dallas/Fort Worth and Phoenix markets.

Sterling Partners is a diversified investment management platform founded in 1983 and based in Chicago. Sterling invests in a wide variety of companies in various stages of growth—from early-stage, high-growth businesses to mature, profitable companies—on a deal-by-deal basis. These investments cross several industries, and the firm makes control, non-control, and preferred equity investments. Sterling adds value to its portfolio companies and the founders with whom it partners with its entrepreneurial roots, deep domain expertise, focus on transformational growth, and access to world-class executive talent.

Headquartered in Newport Beach, California, West Dermatology offers dermatology services in Arizona, California, and Nevada. Founded in 1962, West is a rapidly growing practice management group focused exclusively on dermatology. Acquired by an affiliate of Sun Capital in February 2020, West provides administrative support and a dynamic clinical community for some of the most preeminent providers in the Western U.S., offering cosmetic, surgical, and medical dermatology services for many skin conditions, cancer prevention, and remediation.

Sun Capital Partners, Inc., is a global private equity firm focused on partnering with outstanding management teams to accelerate value creation. Since 1995, Sun Capital has invested in more than 475 companies worldwide with revenues in excess of $50 billion across a broad range of industries and transaction structures. The firm has built a reputation as a trusted partner, recognized for its operational experience. Sun Capital focuses on defensible businesses in growing markets with tangible performance improvement opportunities in the business services, consumer, healthcare, industrial, and technology sectors. The firm has offices in Boca Raton, Los Angeles, and New York and an affiliate with offices in London.

The combination of West, a group providing business support services to over 300 dermatology providers, including many of the most prominent dermatologists in the Western United States, and Platinum, a dermatology group practice organization with a strong presence among many of the leading physicians in the fast-growing Texas and Arizona markets, creates a clear industry leader with more than 100 locations spanning the Southwestern U.S. and Southern California.

Houlihan Lokey served as financial advisor to Platinum and Sterling and assisted in initiating, structuring, and negotiating the transaction on their behalf.