Genstar Capital, a San Francisco-based middle market private equity firm, has acquired OnCURE Medical Corp., one of the nation’s leading operators of radiation therapy centres. Terms of the transaction were not disclosed.
Founded in 1998, OnCURE is headquartered in Newport Beach, California and owns and operates radiation treatment centres in California and Florida. The company has 33 free-standing treatment centres in the two states, and in California it is the largest provider of radiation therapy. OnCURE was founded by Jeffrey Goffman, president, and Dr. Shyam Paryani, chairman and medical director. The company is led by chief executive officer Richard Zehner, who previously founded medical services provider Alliance Imaging Inc. and helped the company go public.
The radiation therapy market in the US is worth an estimated $7 billion (€5.4 billion), according to Genstar. The firm said the industry is highly fragmented, with no single competitor currently operating more than 10 percent of the radiation therapy centres in the US. There are over 2,000 such centres in the country, with the top three companies controlling less than 20 percent of the market.
The firm also said that the company provides care and treatment to almost ten thousand cancer patients each year, and the company expects that number to increase.
“There is a growing trend toward outpatient care where high-quality services are provided in patient-friendly environments,” said Zehner in a statement.
Genstar Capital focuses on investments in selected segments of the healthcare services, life sciences, business services and industrial technology sectors. Previous healthcare investments by the firm include Axia Health Management, PRE International, Harlan Sprague Dawley, NEN Life Sciences and BioSource International.