Chicago-based private equity firm GTCR has announced that it made a majority investment in Brentwood-based pathology company PathGroup.
As part of the deal — terms of which were not disclosed in a release — Pritzker Private Capital and Vesey Street Capital Partners will maintain their minority stakes in the company. In addition, former Labcorp CEO Dave King will join the PathGroup board. Pritzker and Vessey Street recapitalized PathGroup in 2016.
Axios reported that the investment valued PathGroup at $1.2 billion.
PathGroup provides clinical testing services and other pathology services to more than 4,000 physician practices and hospitals in the Southeast and Midwest, according to the release. It was founded in 1965. The new investment will allow the company to expand to Texas, the release noted.
"Dr. Davis and the PathGroup team have done an incredible job of building PathGroup into a unique, scaled lab services business with outstanding clinical services," said Sean Cunningham, GTCR managing director and co-head of healthcare. "We look forward to supporting the team and expanding the PathGroup platform through organic growth initiatives and additional strategic acquisitions."
Latham & Watkins provided legal counsel to GTCR. BofA Securities, Nomura Securities and Kirkland & advised PathGroup.