Morgan Stanley Capital Partners Successfully Acquires Prescott’s

Morgan Stanley Capital Partners Successfully Acquires Prescott’s

In a significant move within the healthcare sector, Morgan Stanley Capital Partners (MSCP) has formalized an agreement to acquire Prescott’s, a well-respected provider of outsourced clinical engineering services. This deal marks a strategic partnership between MSCP and Prescott’s current management team, headed by CEO Brian Straeb, who will continue to steer the company towards new horizons.

Understanding Prescott’s Role in Healthcare

Prescott’s is not just another company; it stands out for its commitment to offering top-notch medical equipment repair and maintenance services. Their expertise encompasses a wide range of surgical suite modalities, such as infusion pumps, patient monitors, and sterilizers. By serving various healthcare settings, including outpatient facilities and health systems across the United States and the UK, Prescott’s plays a crucial role in ensuring that essential medical equipment is operational and up to standard.

Importance of Equipment Maintenance

The importance of maintaining medical equipment cannot be overstated. Steve Rodgers, Managing Director and Head of Healthcare Investing at MSCP, articulated the necessity of Prescott’s repair services, stating they not only enhance the continuity of care but also prevent costly downtimes—issues that can be detrimental in medical environments. By investing in this company, MSCP aims to bolster healthcare services, which is aligned with their ongoing strategy to invest in high-quality outsourced services within this sector.

The Vision for Growth

With this acquisition, the focus will be on expanding Prescott's capabilities while introducing innovative solutions that can benefit both the company and its clients. According to Brian Straeb, the partnership with MSCP is seen as a pivotal step in their growth journey. The insights that MSCP brings, having monitored the outsourced clinical engineering field for several years, will undoubtedly aid Prescott’s in achieving substantial business growth, both organically and through potential acquisitions.

MSCP's Healthcare Investment Strategy

This acquisition marks MSCP's fourth investment within the Healthcare Outsourced Services sector in recent years. Their previous investments demonstrate a clear commitment to enhancing healthcare value chains through operational improvements in portfolio companies. These ventures include notable companies like Clarity Software Solutions, US HealthConnect, and SpendMend, illustrating MSCP’s solid strategy of fostering growth through acquisition.

Support and Advisory Teams

With such significant transactions, the right advisory teams are essential. In this case, Dechert provided legal counsel for the acquisition, while Alvarez and Marsal contributed in areas like Quality of Earnings, tax advisory, and operations. Furthermore, Cascadia Capital played a key financial advisory role for MSCP, ensuring that all aspects of the deal were meticulously handled.

About Prescott's Expertise

Established in 1984, Prescott’s has built a strong reputation in the field of healthcare asset management. Their services enable healthcare providers to minimize equipment downtime while managing costs related to repairs and maintenance efficiently. Prescott's commitment to quality is evident through its specialized workforce of technicians dedicated to maintaining critical surgical equipment.

About Morgan Stanley Capital Partners

Morgan Stanley Capital Partners has established itself as a prominent player in the middle-market private equity space since its inception in 1986. The firm emphasizes creating sustained value in its investments and focuses on sub-sectors within business, consumer, healthcare, and industrial services. The acquisition of Prescott’s is a testament to their strategic vision, aiming to drive substantial growth and innovation within the sector.

About Morgan Stanley Investment Management

As part of a broader financial ecosystem, Morgan Stanley Investment Management boasts over 1,400 investment professionals and manages $1.6 trillion in assets globally as of the end of September 2024. The organization is dedicated to achieving outstanding investment performance while offering a comprehensive range of investment solutions tailored for a diverse client base, including governments, corporations, and individual investors.

Frequently Asked Questions

What services does Prescott’s provide?

Prescott’s offers medical equipment repair and maintenance solutions, alongside the sale and rental of refurbished equipment for surgical suites.

Who is the current CEO of Prescott’s?

Brian Straeb is the current CEO and will continue to lead the company post-acquisition.

What was the strategic goal behind MSCP's acquisition of Prescott’s?

MSCP aims to foster growth and enhance the quality of healthcare services provided by Prescott’s through operational improvements and innovation.

How long has Prescott’s been in operation?

Prescott’s was founded in 1984 and has a long history of providing specialized services in healthcare equipment management.

What sectors does Morgan Stanley Capital Partners generally invest in?

MSCP primarily invests in business and consumer, healthcare, and industrial services markets with a focus on middle-market companies.

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