October 3, 2016 – Shore Capital Partners ("Shore Capital"), a healthcare-focused private equity firm, today announced the sale of ClearPath Diagnostics ("ClearPath"), a leading provider of laboratory diagnostic services in the Northeastern United States, to Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH), the world's leading healthcare diagnostics company.
Shore Capital partnered with ClearPath's founding pathologists, Dr. Michael Jozefczyk and Dr. Michael Mazur, to drive the company's expansion beyond the local Syracuse, New York market. Together, Shore Capital and ClearPath executed a growth strategy that extended the company's geographic reach to four states and expanded the service menu to include new cutting-edge tests. The growth was driven by organic initiatives as ClearPath expanded the sales force from one professional to a team of nine highly trained business development experts and implemented LEAN processes that ensured best-in-class turnaround times.
ClearPath's co-founder and President, Michael Jozefczyk stated, "Shore Capital was the perfect partner to guide ClearPath through a period of transformational growth. Their commitment to clinical quality combined with deep business development expertise allowed ClearPath to thrive during a difficult period in the diagnostic lab industry. With Shore Capital's assistance, we successfully expanded into three new states across the Northeast and our revenue growth outpaced industry averages by more than 10x. The commitment to growth combined with sophisticated metric management techniques allowed us to become the leading independent provider of cancer testing services in the Northeast."
"The success of this partnership is a testament to the hard work of the ClearPath team and further validation of Shore Capital's model of partnering with influential clinicians to grow local businesses into regional leaders," said Justin Ishbia, Managing Partner of Shore Capital and Chairman of ClearPath Diagnostics. "We are pleased with the outcome of this partnership and believe that ClearPath is well positioned to continue growing as a leader in the field of cancer diagnostics."
"LabCorp is excited to both continue its commitment to the upstate New York medical communities and for the potential to grow career opportunities in the entire region over time," said William Haas, LabCorp Senior Vice President and Co-leader of LabCorp Diagnostics. "The combination of LabCorp's comprehensive women's health service offering coupled with the local expertise of the ClearPath professional team will be an unmatched blend of value and quality to our Obstetric and Gynecologic customers and patients."
The transaction closed on October 3, 2016. Terms of the transaction were not disclosed. Winston & Strawn LLP served as legal advisor to ClearPath on the transaction.
Incorporated in 2002, ClearPath's founding pathologists have been practicing in Upstate New York since 1975. By combining cytology and pathology with comprehensive administrative support, ClearPath Diagnostics offers clinicians an unsurpassed resource for anatomic pathology outreach services in New York, Connecticut, New Jersey, Pennsylvania and beyond. www.clearpathdiagnostics.com