Goldman Sachs Division to Acquire Capital Vision Services, Manager of MyEyeDr. Group, from Altas Partners and CDPQ

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NEW YORK & VIENNA, Va. and TORONTO & QUEBEC CITY, Québec-- West Street Capital Partners VII, a fund managed by the Merchant Banking Division of Goldman Sachs (GS MBD), Altas Partners and Caisse de dépôt et placement du Québec (CDPQ) announced today their entry into a definitive agreement under which GS MBD will acquire Capital Vision Services, LP (CVS) from Altas and CDPQ. Capital Vision Services provides management services to MyEyeDr. optometry practices. The terms of the deal, which is expected to be closed in the third quarter, according to the announcement, were undisclosed. However the Wall Street Journal earlier this morning in its own report, valued deal as $2.7 billion, including debt.

MyEyeDr. supports affiliated independent MyEyeDr. optometrists and their practices with a complete array of financial, marketing, human resources, and accounting services, along with managed care credentialing and claims processing. MyEyeDr. practices offer patients personalized and essential eyecare services, a selection of prescription eyeglasses and sunglasses, and standard and specialty contact lenses to meet their unique vision, health and wellness needs, the company said.

“We are thrilled to partner with GS MBD as we turn to the next chapter of our growth and champion a new path for eyecare,” said Sue Downes, co-founder and CEO of Capital Vision Services. “GS MBD’s funds have a long and established track record of successfully scaling health care companies, and we look forward to leveraging their expertise as we provide even more patients access to the latest in vision care technology.”

“We also thank Altas and CDPQ for their partnership and invaluable support these last several years,” added Downes. “By leveraging their operational expertise and strategic insight, we were able to significantly enhance our capabilities, processes and systems and strengthen our senior management team with the addition of multiple key hires.”

Downes told VMAIL that she and her management team will stay on in their current roles."We will be the same team going forward and at the same pace of expansion. We are tremendously excited about the type of resources and tools that we will be able to bring to our doctors, our company and develop important messages about eye health for the industry."

“We are very excited to announce this transaction and mark the beginning of the next chapter of Capital Vision Services’ success,” said Jo Natauri, global head of health care investing for the Goldman Sachs Merchant Banking Division. “We look forward to partnering with this talented management team and building on their foundation of commercial and operating excellence. Capital Vision Services has a proven consumer-directed health care model that champions optometrists and promotes eye health. We are proud to support the company’s continued growth and pleased about this new investment, which expands our portfolio in the health care services sector.”

“We are extremely proud to have partnered with Sue Downes, David Sheffer and the entire Capital Vision Services management team during this time of tremendous growth and development for the company,” said Scott Werry, a managing partner of Altas. “At the time of our investment in 2015, Capital Vision Services managed 165 practices in seven states; by the end of this year, the company’s footprint will have grown to 575 practices in 18 states nationwide. Capital Vision Services is well ahead of schedule in achieving our strategic vision for the business, which was focused on significantly enhancing its scale and scope while delivering improved patient outcomes across its affiliated practices.”

"Capital Vision Services achieved tremendous success in growing the company during the past few years. This is now a world-class organization that is poised for continued growth in the coming years," said Stéphane Etroy, executive vice-president and head of private equity at CDPQ. "It is a great experience to work alongside an exceptional management team such as the one leading Capital Vision Services and support them with the right mix of strategic input and tools that enable them to thrive.”

The transaction is expected to close in the third quarter of 2019 subject to customary closing conditions and regulatory approvals, the joint announcement stated.

Founded in 2001, Capital Vision Services, which provides management services to full-service optometry practices., as ranked the 7th largest optical group in Vision Monday's latest Top 50 U.S. Optical Retailers Report, estimating 2018 calendar year sales. Last year the group added more than $100 million in annual sales and 72 new locations. The company closed 2018 with 437 locations overall and $602 million in annual sales, per the exclusive VM report.

Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, Goldman Sachs Merchant Banking Division is one of the leading private capital investors in the world with equity and credit investments across corporate, real estate and infrastructure strategies. Since 1986, the group has invested approximately $180 billion of levered capital across a number of geographies, industries and transaction types.

Altas Partners, founded in 2012, is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages more than $6 billion on behalf of endowments, foundations, public pension funds and other institutional investors. The firm’s past and present portfolio companies include University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Capital Vision Services, Medforth Global Healthcare Education, and NSC Minerals.

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2018, it held CA$309.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt.

Watch for more details about this story in VMAIL soon.