Investment funds managed by Morgan Stanley Capital Partners (MSCP) have reached an agreement to acquire Prescott’s, a provider of specialty outsourced clinical engineering services in the healthcare sector. The acquisition is from Atlantic Street Capital. MSCP will collaborate with Prescott's existing management team, led by CEO Brian Straeb, who will continue to lead the company.
Prescott’s offers repair and maintenance services for medical equipment and sells refurbished equipment and parts. Their services cover surgical suite modalities such as microscopes, infusion pumps, patient monitors, anesthesia machines, and sterilizers. The company is based in Monument, Colorado, and serves clients across the United States and the UK.
Steve Rodgers, Managing Director and Head of Healthcare Investing at MSCP, stated: “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. 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.”
Brian Straeb expressed enthusiasm about the partnership: “We are excited to partner with the MSCP team for the next chapter of our growth. 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."
This acquisition marks MSCP's fourth investment in the Healthcare Outsourced Services sector since 2019. Previous investments include Clarity Software Solutions, US HealthConnect, and SpendMend.
The deal is pending customary closing conditions. Legal counsel for MSCP was provided by Dechert; Alvarez & Marsal acted as QoE, Tax, and Operations advisor; Cascadia Capital served as financial advisor. For Prescott’s and Atlantic Street Capital, legal counsel was provided by Kramer Levin while Harris Williams (lead advisor) and Houlihan Lokey acted as financial advisors.
Prescott’s was founded in 1984 and provides medical equipment repair solutions alongside sales of refurbished equipment and rentals. They serve health systems nationwide through a workforce of specialized technicians.
Morgan Stanley Capital Partners focuses on middle-market private equity investments primarily in North America. It aims to drive growth through an operational approach across various sectors including healthcare.
Morgan Stanley Investment Management oversees $1.6 trillion in assets globally as of September 30, 2024.