Physician Oncology Services and Vantage Oncology Combine to Form Premier National Network of Outpatient Radiation Oncology Centers
For Immediate Release
MANHATTAN BEACH, Calif. and ATLANTA, Feb. 1, 2011 /PRNewswire/ – Physician Oncology Services, LP (“POSI”), and Vantage Oncology (“Vantage”), today announced that they will merge to create one of the nation’s preeminent networks of outpatient radiation oncology centers of excellence. The combined company will be named Vantage Oncology, and is backed by the financial commitment of Oak Hill Capital Partners (“Oak Hill Capital”), a private equity firm and longstanding investor in the healthcare sector. POSI has been a portfolio company of Oak Hill Capital since January 2007. The terms of the transaction were not disclosed.
This business combination brings together two highly complementary organizations, expected to benefit from capabilities and opportunities on a larger scale than would have been possible for either company on a stand-alone basis. Together, they will have a significantly broader geographic footprint, increased operational and financial resources and decades of business management experience. They will share a distinguished network of expert physicians and state-of-the-art treatment offerings with a goal of expansion and continuity of exceptional cancer care.
The combined company will operate 40 radiation oncology centers in 13 states nationwide, providing critical oncology services to more than 1,000 patients per day. Michael Fiore will lead the new company as CEO, based in Manhattan Beach, Calif., and will be joined by an experienced team of continuing managers from Vantage and POSI. Don Holton will sit on the board of the combined entities. The transaction will not impact day-to-day operations of the facilities within the current Vantage and POSI networks.
“The new Vantage will provide a platform to expand and more easily share best practices among our physicians and the most advanced life-saving technologies across an expanded network of centers. Our centers will have access to increased resources that will help ensure their ability to continue their focus on achieving superior clinical outcomes and providing patients with the highest standard of care. I am confident that our combination will be seamless and the integration of our two companies will be successful because we have similar technologies and treatment approaches, compatible information systems, first-rate physicians and staff, and a common ‘patients-first’ culture,” said Michael Fiore, CEO and co-founder of Vantage.
“Patients at our centers will benefit from this merger through shared technological and clinical expertise and a commitment to innovation and best practices for effective treatment. Our physicians will benefit from being part of a larger, stronger organization that will offer additional opportunities for growth and collaboration,” said Don Holton, CEO of POSI.
The new Vantage network will include more than 80 oncologists as physician partners and treating physicians.
“Both POSI and Vantage are 100 percent focused on achieving the best patient outcomes. This merger will help facilitate our development of multi-specialty oncology networks in many of our markets. I look forward to the opportunities that this merger will bring to further enhance our ability to treat our patients as effectively and compassionately as possible,” said Leslie Botnick, M.D., chief medical officer of Vantage.
“Quality assurance and ongoing training for our medical staff will remain a priority at the combined company. This commitment is reinforced as we extend our services to more patients in more states,” said Frank Critz, M.D., head of Radiotherapy Clinics of Georgia, the largest physician partner within POSI, and Chief Medical Director of POSI.
The investor group that funded Vantage Oncology will join with Oak Hill Capital as investors in the new Vantage.
“We believe the new Vantage is well-positioned to grow organically through new center development and partnerships, as well as through acquisitions of other premier treatment centers. I look forward to working closely with Mike Fiore as CEO of the new Vantage, and with Don Holton and the rest of the management team, which includes experienced leaders from both Vantage and POSI,” said Charles Patton, partner at Oak Hill Capital.
“Speaking on behalf of all the Vantage investors, we are pleased to continue our long partnership with Vantage and are excited about the opportunity for growth this transaction presents,” said Chip Linehan, Special Partner at New Enterprise Associates.
Raymond James & Associates, Inc. acted as financial advisor to Vantage. Pepper Hamilton LLP served as legal counsel on the transaction to Vantage, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to POSI. Financing for the transaction was arranged and underwritten by affiliates of Jeffries Finance LLC and SunTrust Robinson Humphrey, Inc.
About Vantage Oncology
Founded in October 2002, Vantage Oncology acquires, joint ventures, develops and operates radiation oncology centers of excellence. The Company was created in response to the growing need among cancer patients, hospitals and physicians for accessible and advanced radiation treatment therapies. Recent developments at Vantage include the establishment of multi-specialty oncology care organizations (OCO’s), bringing together radiation oncologists, medical oncologists, and surgical specialties in combination with a radiation oncology center of excellence. Vantage is led by a seasoned management team, including co-founder and Chief Executive Officer Michael Fiore, co-founder and Chief Medical Officer Leslie Botnick, M.D., Chief Financial Officer Marshal Salomon, Division President Mark Shalvarjian, Chief Development Officer Mark Ahern and Chief Technology Officer Christopher Rose, M.D. For more information about Vantage, visit www.vantageoncology.com.
About Physicians Oncology Services
Physician Oncology Services (POSI) is a portfolio company of Oak Hill Capital Partners. Its primary operation is RC Cancer Centers (previously known as Radiotherapy Clinics of Georgia), which was founded in 1984 and has earned a reputation for being one of the country’s top cancer treatment and research facilities because of its commitment to quality, use of the latest radiation technology and focus on research that enables it to treat men and women with different types of cancer, including breast, prostate, lung, colon, lymphatic and others. RC Cancer Centers has treated more than 13,000 men for prostate cancer and has compiled its observations of these men, both before and after treatment, into one of the largest computerized databases on prostate cancer in the United States. For more information, visit www.rccancercenters.com.
About Oak Hill Capital Partners
Oak Hill Capital Partners is a private equity firm with more than $8.2 billion of committed capital from leading entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Robert M. Bass is the lead investor. Over a period of more than 24 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 60 significant private equity transactions. Oak Hill Capital Partners is one of several Oak Hill partnerships, each of which has a dedicated and independent management team. These Oak Hill partnerships comprise over $30 billion of investment capital across multiple asset classes. For more information about Oak Hill Capital Partners, please visit www.oakhillcapital.com.
For Vantage Oncology:
Tel: (949) 364-2821
For Physician Oncology Services:
Tel: (770) 391-4315
For Oak Hill Capital Partners:
Lin-Hua Wu/Sofia Mata-Leclerc
Tel: (415) 391-4665