Summer Street Capital Recapitalizes New England Orthotics & Prosthetic Systems (“NEOPS”) to Establish Platform for O&P Industry Consolidation
BUFFALO, N.Y., May 10, 2012 /PRNewswire/ — Private equity firm Summer Street Capital II, L.P. is pleased to announce that it has invested in New England Orthotic & Prosthetic Systems, a leading provider of orthotic and prosthetic devices through a network of 30 clinics in New York, Connecticut, Massachusetts, and Rhode Island.
Summer Street will partner with highly accomplished industry veteran and former Hanger Orthopedic Group Chairman and CEO Ronald J. Manganiello, who will continue to serve as NEOPS’s Chief Executive Officer. Manganiello also currently serves as a Board Member of the American Orthotic & Prosthetic Association. NEOPS has grown since its inception via new branch openings and acquisitions into one of the largest and most successful O&P providers in the United States. Manganiello formed NEOPS in 1998 around a business model unique within the O&P industry creating a partnership with the Company’s branch manager-clinicians. The branch manager-clinicians at NEOPS participated in the transaction economics and all will stay on and continue to own equity in the Company.
McCarthy C. “Mac” Hanger, III, CP, will also join as Chief Operating Officer and as a member of the NEOPS Board of Directors and will work on various new initiatives including business development and acquisitions. In addition to bringing over 30 years of clinical leadership and entrepreneurial experience to NEOPS, Mac is the great grandson of J.E. Hanger, the Civil War amputee who is credited with founding the modern prosthetics industry.
“Everyone within the NEOPS family is extremely excited about our new relationship with Summer Street Capital. We believe they bring to the table the ideal mix of healthcare industry knowledge, expertise in growing middle market enterprises, and a shared vision for scaling our partnership model with leading clinicians in our markets,” said Ronald Manganiello. “With all the flux occurring in the healthcare marketplace, NEOPS offers established clinicians an appealing combination of large company efficiencies, systems and contracts, flat organization and infrastructure, and the nimbleness and entrepreneurial spirit of an independent operation. Our goal is to provide our clinician-partners the tools necessary to excel as valued members of the patient rehabilitative team alongside physicians, physical therapists, nurses and other key medical professionals.”
“We were strongly attracted to Ron’s track record of success over 26 years in the O&P industry and the unique NEOPS business model which emphasizes the efficient delivery of appropriate, high quality O&P patient care and rewards clinicians for their hard work,” added Summer Street Partner Barry Freeman who leads the firm’s healthcare services investment team. “Ron has demonstrated an ability to attract and retain the best clinicians and provide them an environment and a career path that far exceeds the opportunities elsewhere in the industry. We look forward to working with Ron and the entire NEOPS team in continuing to build on their tremendous success.”
Terms of the transaction were not disclosed, though Summer Street uses its over $500 million of managed capital to make equity investments that typically range from $15 million to $50 million in companies with revenues under $200 million.
About New England Orthotic & Prosthetic Systems
NEOPS is the premier provider of state-of-the-art orthotic and prosthetic patient care products and services in the eastern United States. The company is headquartered in Branford, CT with 30 patient care clinics across 4 states. More information on the company and their comprehensive level of products and services is available at www.neops.com
About Summer Street Capital Partners LLC
Summer Street Capital Partners LLC, founded in 1999, is a Buffalo, NY-based private equity fund manager with over $500 million of committed capital focused on investing in small-market companies. The firm invests alongside talented managers, bringing capital and resources to support acquisitions and aggressive growth strategies. Summer Street’s investors include leading pension funds, insurance companies, and banking institutions. Summer Street’s investments support management buy-outs, family transitions, corporate divestitures, growth financings, and recapitalizations. The investment team is complemented by a team of experienced operating partners who are integrally involved in assisting portfolio companies. Visit www.summerstreetcapital.com for additional information.
SOURCE Summer Street Capital