Shore Capital Partners Closes On Veterinary Platform Investment
January 22, 2018
CHICAGO – November 1, 2017 – Shore Capital Partners (“Shore Capital” or “Shore”) is pleased to announce the recapitalization of Advanced Animal Hospital Group and Progressive Pet Animal Hospitals and merger of the respective businesses to form Midwest Veterinary Partners (“MVP” or the “Company”). The Company has 22 general practice veterinary clinics in Michigan, Wisconsin, and Illinois, and provides services to companion animals including vaccinations, surgery, wellness exams, oncology, ophthalmology, allergy treatment and dermatology. Financial terms of the transaction were not disclosed.
Shore has partnered with Dr. Vic Dhillon, owner of Advanced Animal Hospital Group, and Dr. Jeff Rothstein, owner of Progressive Pet Animal Hospitals, to pursue a consolidation of animal hospitals throughout the Midwest. Both Dr. Dhillon and Dr. Rothstein are entrepreneurial veterinarians with successful track records of acquiring and establishing high-quality animal hospitals.
“Since our founding, we have been firm believers that animals are not simply pets or property, they are members of the family, and we take great pride in helping to improve and maintain their health and overall well-being,” said Vic Dhillon, Advanced Animal Hospital Group founder. “As customized veterinary solutions have become more complex and demanding, we believe that collaborating with financial and strategic partners is beneficial for our customers and, of course, their beloved pets. With Shore Capital Partners’ investment and by joining forces with Progressive Pet Animal Hospitals, we will have the additional resources and capabilities to create a leading veterinary services company in the Midwest.”
“At Progressive Pet Animal Hospitals, we take great pride in offering extensive medical and preventative solutions for pets,” said Jeff Rothstein, Progressive Pet Animal Hospitals founder. “This investment and partnership will greatly expand our bandwidth and help grow our team of passionate and knowledgeable veterinary professionals. Both Shore Capital Partners and Advanced Animal Hospital Group are well-aligned with our mission and core values and we are delighted to now be operating under the Midwest Veterinary Partners brand.”
Shore plans to invest in infrastructure to standardize operations and provide support to MVP’s current and future clinics including centralized finance, accounting, human resources, IT, sales and marketing.
With pet ownership among U.S. households at an all-time high of 68%, and an increase in the average lifespan of pets, ownership costs have continued to rise and demand for veterinary services has increased. Veterinary service expenditures in the U.S. are expected to continue growing at more than 4% CAGR, surpassing $46 billion by 2021.
“Advanced Animal Hospital Group and Progressive Pet Animal Hospitals are terrific businesses that each have a reputation for providing high quality care and treatment for pets of all kinds, and that provide highly complementary services,” said Mike Cooper, a Partner at Shore Capital Partners. “Importantly, as pet ownership levels continue to increase, we believe this investment and merger represents a strategic opportunity to take advantage of a fragmented, yet growing market and to consolidate veterinary clinics throughout the Midwest. We are very pleased to partner with Vic, Jeff and their respective teams, and are eager to begin aggressively scaling this new company.”
This investment represents the fourth platform investment out of Shore Capital Partners Fund II, L.P., a $190 million investment vehicle raised in April 2017.
Katten Muchin Rosenman LLP provided legal counsel to Shore Capital Partners. Butzel Long provided legal counsel to the Advanced Animal Hospital Group and Progressive Pet Animal Hospitals.
About Shore Capital
Shore Capital is a Chicago-based private equity firm focused exclusively on microcap healthcare investments. Shore supports management partners with capital, business development expertise, and industry knowledge to accelerate growth, fund acquisitions, and generate value to shareholders. Shore targets investments in proven, successful private companies with superior management teams, stable cash flow, and significant growth potential, including organic and growth through industry consolidation. Shore has approximately $350 million of equity capital under management through various investment vehicles including Shore Capital Partners Fund II, L.P. with $190 million of capital commitments. For more information, please visit: www.shorecp.com.