Investment funds managed by Morgan Stanley Capital Partners (MSCP), the middle-market focused private equity team at Morgan Stanley Investment Management, have agreed to acquire Prescott’s, a healthcare-focused outsourced clinical engineering services provider, from Atlantic Street Capital. MSCP is partnering with the current management team led by Brian Straeb, CEO, who will continue to lead the business.
“We are excited to partner with the Prescott’s team as they continue building a best-in-class platform in outsourced clinical engineering services for critical surgical suite equipment,” Steve Rodgers, managing director and head of healthcare investing at MSCP, said. “Prescott’s timely repair and maintenance services enable continuity of care and avoid costly equipment downtime. This investment represents our continued effort to invest in high-quality healthcare focused outsourced services businesses.”
“We are excited to partner with the MSCP team for the next chapter of our growth,” Straeb said. “MSCP has been actively tracking the outsourced clinical engineering space for several years and has a deep understanding of the industry and various business models. MSCP engaged their operations team early in the process as they recognized the importance of looking at value creation from multiple angles. This made them an ideal partner to contribute meaningfully to our strategic efforts both organically and inorganically so that we can hit the ground running immediately post close.”
MSCP’s acquisition of Prescott’s will be its fourth investment in the healthcare outsourced services sector. Closing is subject to customary closing conditions.
Dechert acted as legal counsel, Alvarez and Marsal acted as QoE, tax and operations advisor and Cascadia Capital acted as financial advisor to MSCP. Kramer Levin acted as legal counsel and Harris Williams (lead advisor) and Houlihan Lokey acted as financial advisors to Prescott’s and Atlantic Street Capital.
