Goldman Sachs’ merchant banking division (GS MBD) West Street Capital Partners VII agreed to acquire Capital Vision Services (CVS) for $2.7 billion, including debt, according to media reports.
West Street Capital Partners VII will purchase CVS from private equity firm Altas Partners and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), according to a joint statement.
CVS manages the optometry practice MyEyeDr. Jo Natauri, who is the global head of healthcare investing for Goldman Sachs merchant banking division said that CVS has demonstrated a strong consumer-directed healthcare model that promotes eye health.
With the acquisition, CVS will mark the beginning of a new chapter in healthcare. According to Bloomberg, the number of practices managed by CVS will have increased to 575 in 18 US states. The transaction is expected to close in the third quarter of 2019.
“We are thrilled to partner with GS MBD as we turn to the next chapter of our growth and champion a new path for eye care,” said Sue Downes, Co-Founder and CEO of CVS. “GS MBD’s funds have a long and established track record of successfully scaling healthcare companies, and we look forward to leveraging their expertise as we provide even more patients access to the latest in vision care technology.”
According to Stéphane Etroy, executive vice-president and head of private equity at CDPQ, CVS has become a ‘world-class organisation that is poised for continued growth in the coming years’.
“It is a great experience to work alongside an exceptional management team such as the one leading CVS and support them with the right mix of strategic input and tools that enable them to thrive,” Etroy said.