Superior Vision Services, Inc. Completes $54.25 million Recapitalization with ABS Capital Partners, ORIX Venture Finance LLC and DCA Capital Partners
New Investors Attracted to Leading Provider of Vision Plans
RANCHO CORDOVA, CA. February 9, 2007- Superior Vision Services, Inc., a leading provider of managed vision care plans, announced today that it had completed
a recapitalization. The transaction consisted of $19.25 million of equity and $35 million of debt financing which will primarily be used to repurchase stock
held by legacy shareholders. The equity investment was sourced by Sacramento - based DCA Capital Partners, a regionally-focused provider of middle-market growth
capital, and was led by ABS Capital Partners, a leading later-stage growth company investor. The debt was provided by ORIX Venture Finance LLC, a leading provider
of expansion capital to mid- to late-stage venture-backed companies. The new capital structure will allow the Company to continue to execute on its growth plan and
increase its penetration nationwide. As a result of the financing, John Stobo, a General Partner at ABS Capital, and Mark Anderson, a Principal at ABS Capital, will
join Superior Vision’s Board of Directors.
“With healthcare costs rising, benefits managers are looking for the best ways to add value to their employees, and Superior Vision fulfills that promise by offering
flexible plans that allow members to optimize the value of their vision benefits,” said Rick Corbett, CEO of Superior Vision Services, Inc. “Having active partners
like ABS Capital and DCA Capital will support us in our continued efforts to offer our members the highest levels of service and innovative tools to manage their plans.”
Superior Vision contracts with more than 1,200 clients in which over 1.1 million members are enrolled. The Company’s national provider network represents one of the
largest and most diverse provider networks in the U.S. The U.S. market for vision-related services and products is large and growing, driven by an aging baby boom
population, increasing incidences of eye strain resulting from continued computer usage and a growing emphasis placed by consumers on the fashion component of eyewear.
The total U.S. vision care services and products market was $27.2 billion in 2005, with approximately 59% of the population needing some form of vision correction.
Currently, only 29% of all private sector employees in the U.S. have access to employee vision benefits. As employers have tried to balance rising health care costs with
employee satisfaction and retention, they have increasingly looked to add cost-effective benefits such as vision. Consequently, vision care coverage is one of the fastest
growing employee benefits and is rated by employees as one of the most important benefits.
“The market for employee vision benefits is growing and ripe for further penetration,” said John Stobo. “With the largest most diverse network nationwide and unmatched flexibility, we believe that Superior Vision will
continue to benefit and build its position as a market leader.”
“Superior Vision is poised to expand its business model and advance in the vision care marketplace,” added Michael David, Managing Director at ORIX Venture Finance.
“Our goal is to help companies find solutions to their financing needs and we are pleased to be able to support their growth.”
“The management team has proven their ability to grow the business rapidly and profitably, having increased revenues by over 400x over the past 10 years” said Jeremy Wolfe,
a partner at DCA Capital. “You have to love the opportunity to invest behind that kind of track record and momentum.”
Superior Vision’s products and services provide significant value by delivering high-quality managed vision benefits to plan members and by providing comprehensive, cost-effective
customer service to its clients. The Company’s plan is one of the few vision plans that offers members the option of visiting any of the three types of eye care professionals--ophthalmologists,
optometrists and opticians--including network access to providers and materials at several national eye care chains such as Lenscrafters, Pearle Vision and WalMart. Superior Vision offers its
clients comprehensive primary eye care services and sells a variety of vision benefit plans to employers offered either on an employer-paid arrangement or on a voluntary arrangement as part of an
employee’s flexible benefits offering.
About Superior Vision Services, Inc.
From their headquarters just outside Sacramento, California, Superior Vision has continued to set the standard as the leader in the managed care vision market since 1993.
Superior Vision markets vision plans to a variety of employers, including corporations, universities, government entities and hospitals. With an unrivaled provider network nationwide,
Superior Vision has millions of members and thousands of clients, including some of the most recognized names in the country. The company has strong presence in the small, mid, and large group market.
For more information, please visit http://www.superiorvision.com.
About ABS Capital Partners
Founded in 1990, ABS Capital Partners has established a strong track record for investing in later-stage growth companies. With $1.5 billion under management, ABS Capital helps companies choose the growth
initiatives that build the greatest long-term value. ABS Capital has partnered with numerous portfolio companies to achieve successful outcomes, including over 40 initial public offerings and acquisitions by market
leaders like CBS Corporation, EMC Corporation, LabCorp and Pitney Bowes Inc. For more information, please visit www.abscapital.com.
About ORIX Venture Finance LLC
ORIX Venture Finance provides enterprise financing to mid- and late-stage venture capital-backed companies via acquisition financing, expansion capital and working capital term loans and credit lines.
The Venture Finance team, staffed with highly seasoned venture lending professionals, meets the challenges facing growth companies by structuring flexible financing packages that meet your unique needs.
We are a stable and reliable partner dedicated to supporting the growth and success of professionally backed companies with a range of debt products. Please visit www.orixventurefinance.com for more information.
About DCA Capital Partners
DCA Capital is the Sacramento region’s leading source of middle-market growth capital, providing equity investments in promising companies with great management teams and exciting growth opportunities.
Headquartered in Roseville, the firm invests in local companies with revenue between $10 million and $150 million in revenue across a broad array of industries, including: business and financial services, healthcare, media and
communications, technology, retail and consumer products, and manufacturing and distribution.
Contact:
Karen O’Brien
Superior Vision Services, Inc.
(916) 859-6229
kobrien@superiorvision.com
Stephanie Manuel
ABS Capital Partners
(410) 246-5609
smanuel@abscapital.com
Michelle O’ Brien
ORIX Venture Finance LLC
(212) 497-7802
MOBrien@hlhz.com
Curt Rocca
DCA Capital Partners
(916) 960-5353
crocca@dcapartners.com
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