Kensington Acquires Centric Health's Surgical Business for $35M to Expand Elderly Care Services

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on November 26, 2019, Kensington Capital Partners Limited, a leading Canadian private equity investment firm, announced the acquisition of Centric Health Corporation’s surgical business for $35 million.

Following the completion of the acquisition, Centric Health’s surgical services business will be wholly owned by the newly established entity, Clearpoint (Clearpoint Heath Network Inc.). Clearpoint is Canada’s largest independent network of surgical centers, with operations spanning Toronto, Mississauga, Winnipeg, Calgary, and Vancouver.

Centric Health, established in 2003, is a Canadian healthcare service provider. The company is committed to becoming one of Canada’s leading and most trusted providers of comprehensive specialized pharmacy services and solutions for seniors. Centric Health operates an extensive nationwide network of pharmacy distribution centers, offering highly cost-effective solutions for chronic disease medications and other specialized clinical pharmacy services. Centric Health holds significant competitive advantages over other medical companies in its three core areas: specialty pharmacy, orthotics, and surgical services.

The surgical business acquired by Kensington constitutes the core operations of Centric Health. Through Centric Health’s network of surgical centers, patients can schedule surgical procedures, nursing services, and consultations with medical specialists in relevant fields based on their geographic location. The healthcare services provided via this platform span multiple specialties, including otolaryngology, general surgery, ophthalmology, orthopedics, and cosmetic gynecology.

At present, Centric Health serves more than 31,000 individuals requiring medical care across over 450 senior living communities (including nursing centers and retirement homes) nationwide. By meeting the growing demands of Canada’s healthcare system, Centric Health’s unparalleled national healthcare delivery platform offers significant potential for the future expansion and growth of medical services in the region.

Kensington, the acquirer in this transaction, was founded in 1996 and is a leading private equity investment firm in Canada. The company offers individual investors a diversified portfolio of private equity investments, including access to hard-to-reach private equity funds and direct investments in private companies. Kensington primarily invests across various industries in the United States, Canada, and other regions.

To date, Kensington’s investments in private equity, venture capital, and alternative assets have exceeded $1.5 billion. Institutional investors, such as pension funds and professional asset management firms, along with high-net-worth individuals and retail investors, hold Kensington funds in their portfolios. Kensington’s active management approach and relationship-driven business model have generated substantial returns for investors.

Regarding this acquisition, Kirk Hamilton, Senior Vice President of Kensington, stated: “We are committed to delivering high-quality patient care and aim to establish meaningful and valuable partnerships within the healthcare sector. This platform investment represents a significant opportunity to collaborate with all stakeholders in the Canadian healthcare system.”

(Compiled by Wang Fang)