Update: Gastroenterology M&A in Q1 2021

Vertical: Gastroenterology
Author: JC Lupis
Date: May 2021

Private equity groups and their portfolio companies remained acquisitive in the gastroenterology vertical in the first quarter of 2021, with GHA Research indicating 19 acquired practices, 18 of which were by PE-backed platforms.

Activity was heaviest at the start of the year as buyers continued a strong fourth quarter, and tapered off as the quarter wore to a close. Eight practice acquisitions were announced in January, followed by 7 in February and 4 in March.

GHA-Gastroenterology-Deals-by-Month

There were 3 sizable deals of note:

  • GI Alliance, a portfolio company of Waud Capital Partners, announced its acquisition of Digestive Health Associates of Texas (DHAT) in January. DHAT consists of 84 physicians and 15 mid-level providers across 65 locations.
  • Assured Healthcare Partners also announced a large acquisition in January. Assured bought Allied Digestive Health, a practice headquartered in New Jersey with 65 physicians across 35 locations.
  • In March, Waud’s GI Alliance was at it again, further deepening its presence in Texas by acquiring Austin Gastroenterology. The practice has 36 physicians and 30 mid-level providers at 20 locations.

The following breaks down the number of add-on acquisitions announced in Q1 by PE-backed gastroenterology platforms:

  • GI Alliance: 4
  • US Digestive Health (Amulet Capital Partners): 4
  • One GI (Webster Equity Partners): 3
  • Pinnacle GI Partners (HIG Capital): 3
  • Gastro Health (Audax Private Equity): 2
  • Capital Digestive Care (Kelso & Company): 1

For the full list of deals, see GHA’s Q1 2021 M&A Database spreadsheet.

Interested in the gastroenterology market? Contact jclupis@ghadvisors.net to set up a time to chat about the state of the market.