Pakistani-American Entrepreneur
Receives $50 Million In Equity Investment
Dr
Raza Bukhari |
Chiago,
IL: Water Street Capital Partners, a Chicago-based private
equity firm focused exclusively on the healthcare industry,
announced May 22 that it has completed the acquisition of
a majority ownership stake in New Jersey-based Lakewood Pathology
Associates (LPA), owned by Dr. Raza Bokhari, a physician-turned-entrepreneur
of Pakistani descent. LPA is a full-service national provider
of multi-specialty anatomic pathology services to clinicians
operating in outpatient surgical settings in more than 21
states.
Water Street Capital Partners has committed $50 million in
equity financing to help accelerate LPA’s organic growth
and to further build market leadership through acquisition
of small and mid-size surgical pathology service providers
nationwide. Water Street will become the company’s majority
shareholder while the current LPA management team will retain
a significant ownership stake in the company as they continue
to lead the day-to-day business.
“We are pleased to become a platform investment vehicle
for Water Street Capital Partners,” said Raza Bokhari,
MD, president and chief executive officer of Lakewood Pathology.
“Our business will benefit immensely from the superior
resources of Water Street Capital, including their extensive
healthcare industry relationships, industry operating expertise,
and access to capital. Partnering with Water Street Capital
will significantly enhance our growth prospects and strengthen
our ability to assist physicians in improving the standard
of care for their patients.
“LPA is another example of a successful middle-market
company in an attractive healthcare niche partnering with
the Water Street team,” said Kip Kirkpatrick, partner
of Water Street Capital Partners and chairman of LPA. “Their
value proposition is unique within the industry. We believe
there is great opportunity for LPA to become a national market-leading
pathology services company.” Noting that the diagnostic
testing business is a highly fragmented $40+ billion market
in the United States, Kirkpatrick added, “There is considerable
opportunity for LPA to grow its business by entering new geographies
and expanding its breadth of specialty pathology services.”
Tim Dugan, partner of Water Street and board member of LPA,
added, “We have spent several years evaluating the broader
reference laboratory industry, with a particular focus on
esoteric testing services. Given the great underlying trends
of the rapidly growing anatomical pathology industry –
galvanized by a number of factors, including expanding testing
capabilities and an aging population – we believe we
have picked the right platform and the right management team
to invest behind.”
About Water Street Capital Partners
Water Street Capital Partners is a Chicago-based private equity
firm focused exclusively on building market leadership companies
in the healthcare industry. Applying its financial and operating
expertise, deep industry knowledge, and extensive network
of contacts, Water Street helps companies significantly accelerate
growth and create value. The team, which has invested together
since 1998, is currently investing its $370 million fund,
the firm’s first independent fund. Water Street typically
leads investments in transactions from $50 million to $500
million in value. The Water Street team’s historical
investments have included Medex, AbilityOne, and Kendro Laboratory
Products.
About Lakewood Pathology Associates
Headquartered in Lakewood, New Jersey, Lakewood Pathology
Associates is a leading national pathology company that provides
a full range of multi-specialty services, including extensive
diagnostic procedures and specialist consultations. Accredited
with distinction by the College of American Pathologists,
Lakewood Pathology Associates has long been recognized for
exceptional service and quality. Lakewood currently focuses
on a broad base of specialty pathology services including
urology, gastroenterology, and hematopathology. For two consecutive
years, the company has been named by the Philadelphia Business
Journal as one of the top 25 fastest-growing companies in
South New Jersey.
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