Water Street Announces Sale of U.S. Anatomic Pathology Company to Miraca Life Sciences

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Oct 22, 2013, 06:01 ET

CHICAGO, Oct. 22, 2013 /PRNewswire/ -- Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry, announced today that it has sold its anatomic pathology company, PLUS Diagnostics ("PLUS"), to Miraca Life Sciences. Water Street built PLUS into a national leader following its investment in the Irvine, Calif.-based company. Its sale of PLUS to Miraca Life Sciences makes Miraca the largest independent anatomic pathology laboratory company in the United States.

Water Street acquired PLUS in 2006 when it was a regional laboratory. It invested its team's industry expertise and network of resources to transform PLUS into a national leader offering a comprehensive menu of specialty diagnostic testing and consultative services. Working with CEO David Pauluzzi, Water Street supported PLUS with opening bi-coastal laboratories, introducing innovative new tests and recruiting an experienced team of nationally recognized pathologists. In seven years, PLUS tripled its laboratory capacity and expanded its capabilities into dermatopathology, hematopathology, and gastrointestinal and genitourinary pathology to serve a growing base of U.S. customers.

"Together with David and his management team, we transformed PLUS into a national leader that is highly regarded for offering innovative diagnostic services customized to the unique needs of providers across a range of medical specialties," said Ned Villers, a partner with Water Street and a member of the PLUS board of directors. "We are pleased that the successful execution of our value-creation strategy resulted in PLUS being acquired by Miraca Life Sciences to achieve Miraca's vision of becoming the nation's leading independent pathology laboratory company."

PLUS' laboratories in New Jersey and California will be added to Miraca Life Sciences' national network of seven labs to serve more than 5,500 patients each day.

"We are eager to combine resources with PLUS Diagnostics, which will allow us to expand our commitment to our clients and our patients by partnering with a substantial and well-respected pathology institution," said Miraca Life Sciences President and CEO Dr. Frank Basile. "PLUS shares our vision and commitment to deliver personalized customer service and the highest quality diagnostic and prognostic information. We expect to be able to extend our world-class pathology services to a broader base of physicians and patients thanks to this transaction."

About Miraca Life Sciences

Serving more than 3,500 patients each day, Miraca Life Sciences is a leader in providing an academic-caliber pathology laboratory with diagnostic services in the fields of dermatology, gastroenterology, hematology and urology. Building upon our experience with health IT, we also offer accessible technology solutions to assist healthcare professionals as they work towards accordance with Meaningful Use initiatives.

Miraca Life Sciences, a wholly-owned subsidiary of Japan-based Miraca Holdings Inc., employs a talented team of leading pathologists, histologists, lab technicians, technology consultants, and other medical professionals — all driven to help provide the highest and most up-to-date levels of diagnostic quality, enhanced workflow and practice solutions possible. It is part of our commitment: not only to scientific excellence, but to patients and practices.

About Water Street

Water Street is a strategic investor focused exclusively on health care. The firm has a strong record of building market-leading companies across key growth sectors in health care. It has worked with some of the world's leading health care companies on its investments including Gentiva, Johnson & Johnson, Medtronic and Smith & Nephew. Water Street's team is comprised of industry executives and private equity professionals with decades of experience investing in and operating global health care businesses. The firm is headquartered in Chicago. For more information about Water Street, visit waterstreet.com.

SOURCE Water Street Healthcare Partners