Investment funds managed by Morgan Stanley Capital Partners (“MSCP”), the middle-market focused private equity team at Morgan Stanley Investment Management, have agreed to acquire Prescott’s, a leading healthcare focused specialty outsourced clinical engineering services provider, from Atlantic Street Capital. MSCP is partnering with the current management team led by CEO Brian Straeb, who will continue to lead the business.

Prescott’s provides medical equipment repair and maintenance service solutions, alongside refurbished equipment and parts sales and rentals for critical surgical suite modalities including microscopes, infusion pumps, patient monitors, anesthesia machines and sterilizers. Headquartered in Monument, Colorado, Prescott’s serves health systems, outpatient facilities and other care settings across the United States and the UK.

Steve Rodgers, Managing Director and Head of Healthcare Investing at MSCP, said: “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.”

Straeb said: “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. MSCP engaged their operations team early in the process as they recognized the importance of looking at value creation from multiple angles. This made them an ideal partner to contribute meaningfully to our strategic efforts both organically and inorganically so that we can hit the ground running immediately post close.”

MSCP’s acquisition of Prescott’s will be its fourth investment in the Healthcare Outsourced Services sector. Since 2019, MSCP has invested in health plan communications solutions provider, Clarity Software Solutions, pharma education and marketing solutions provider, US HealthConnect and health system cost cycle management provider, SpendMend.

Closing is subject to customary closing conditions.

Dechert acted as legal counsel, Alvarez and Marsal acted as QoE, Tax and Operations advisor, and Cascadia Capital acted as financial advisor to MSCP. Kramer Levin acted as legal counsel and Harris Williams (lead advisor) and Houlihan Lokey acted as financial advisors to Prescott’s and Atlantic Street Capital.

About Prescott’s

Founded in 1984, Prescott’s is a leading provider of healthcare medical equipment repair and maintenance service solutions, alongside refurbished equipment & parts sales, and rentals. Prescott’s helps healthcare providers reduce equipment downtime, simplify equipment management, and reduce repair and maintenance costs. The Company covers critical surgical suite equipment modalities including surgical microscopes, infusion pumps, patient monitors, anesthesia machines and sterilizers. Prescott’s services health systems, outpatient facilities, clinics, and other care settings nationwide and in the UK through a differentiated workforce of repair technicians. For more information, please visit the Company’s website https://prescottsmed.com/.

About Morgan Stanley Capital Partners

Morgan Stanley Capital Partners, part of Morgan Stanley Investment Management, is a leading middle-market private equity platform established in 1986 that focuses on privately negotiated equity and equity-related investments primarily in North America. Morgan Stanley Capital Partners seeks to create value in portfolio companies primarily in a series of subsectors in the business and consumer, healthcare, and industrial services markets with an emphasis on driving significant organic and acquisition growth through an operationally focused approach. For further information about Morgan Stanley Capital Partners, please visit www.morganstanley.com/im/capitalpartners.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

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