Silver Oak Services Partners Completes Sale of Physicians Endoscopy

Aug. 30, 2013 -Portfolio Company News

Silver Oak Services Partners, LLC announced today that it has completed the sale of its equity interest in its portfolio company Physicians Endoscopy to Charlotte-based private equity firm Pamlico Capital.

Headquartered in Jamison, Pennsylvania, Physicians Endoscopy (“PE” or the “Company”) is the largest single-specialty developer, owner and manager of endoscopy centers in the United States. Founded in 1998, the Company operates 29 centers across the United States.  PE partners with physicians and hospitals and provides a comprehensive suite of billing, management and development services to its partner centers.

Silver Oak made its original investment in PE in April 2008.  During Silver Oak’s ownership, the PE surgery center network more than doubled in size from 14 centers to 29 centers, with EBITDA nearly tripling.  Silver Oak worked closely with management to drive same center growth, improve operating efficiencies, add management depth to handle growth and build scale through de novo development and acquisitions.

“We are extremely proud of our partnership with Barry Tanner and the PE management team and the Company’s track record of growth,” said Dan Gill, Managing Partner at Silver Oak. “With a strong management team, physician-friendly partnership model and unparalleled expertise in developing and managing endoscopy centers, the company is well positioned for continued growth.”

Barry Tanner, Chief Executive Officer of Physicians Endoscopy, noted, “Silver Oak has been a tremendous partner over the past five and a half years. The team shared our vision of becoming the largest single-specialty operator of GI physician partnered endoscopy centers while providing exceptional services to those centers to help facilitate excellent care for patients. The leadership team at Silver Oak provided us with tremendous advice, support and mentoring throughout our partnership. Under Silver Oak’s stewardship, PE enjoyed substantial growth.”

Piper Jaffray & Co. and Kirkland & Ellis LLP acted as financial advisor and legal counsel to the sellers, respectively.