Welsh, Carson, Anderson & Stowe (WCAS) Acquires Mega-practice in Orthopedics - Launches New Platform

As expected, the 4th quarter of 2021 delivered an uptick in activity with eight reported orthopedic practice acquisitions, the highest this year. Notably, Resurgens Orthopaedics, one of the largest practices in the country, was acquired by Welsh, Carson, Anderson & Stowe Partners, a leading private equity group.

Orthopedic Practice Acquisitions Surge in the Third Quarter Indicating a Potential Tipping Point

The third quarter of 2021 delivered seven reported orthopedic practice acquisitions, increasing to a new quarterly high for the year. This could be an indication the consolidation is transitioning from Early Pioneering to Geographic Expansion representing an increased opportunity for selling physician owners.

Orthopedic Platforms Continue to Form - Positioning for Market Share and Private Equity Recapitalization

The second quarter of 2021 delivered three reported orthopedic practice acquisitions, including the formation of Ortho Alliance New Jersey which included seven orthopedic practices in New Jersey joining to form the largest orthopedic group in the state.

Seventeen PE Firms are now Investing in Orthopedic Practice Acquisitions, Signaling a Probable Surge in 2021 Deal Activity

The first quarter of 2021 delivered four reported orthopedic practice acquisitions continuing a steady pace of transactions in the specialty. Notably, we saw the formation of two new platforms. Trivest partners acquired Bluegrass Orthopedics to form a platform of the same name, and Kohlberg & Company acquired Orthopedic Associates of Manhasset and formed Spire Orthopedic Partners. Seventeen PE firms now have orthopedic platform investments. We believe activity will continue to build throughout the year.