Investment funds managed by Morgan Stanley Capital Partners (MSCP) have announced an agreement to acquire Prescott’s, a company specializing in healthcare-focused outsourced clinical engineering services. Prescott's is being acquired from Atlantic Street Capital, with the current management team, led by CEO Brian Straeb, continuing to lead the business.

Prescott’s offers repair and maintenance services for medical equipment, as well as sales and rentals of refurbished equipment and parts. The company serves health systems and other care settings across the United States and the UK from its headquarters in Monument, Colorado.

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

Brian Straeb expressed enthusiasm about partnering with MSCP: “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."

This acquisition marks MSCP's fourth investment in the Healthcare Outsourced Services sector since 2019. Previous investments include Clarity Software Solutions, US HealthConnect, and SpendMend.

The transaction is subject to customary closing conditions. Dechert served as legal counsel to MSCP, while Alvarez & Marsal provided advisory services. Cascadia Capital acted as financial advisor to MSCP. For Prescott’s and Atlantic Street Capital, Kramer Levin served as legal counsel with Harris Williams and Houlihan Lokey acting as financial advisors.

Founded in 1984, Prescott’s aims to reduce equipment downtime for healthcare providers through its range of service solutions. More information can be found on their website.

Morgan Stanley Capital Partners focuses on middle-market private equity investments primarily in North America. Further details about Morgan Stanley Investment Management can be accessed online.