Morgan Stanley Capital Partners Enters Agreement to Sell Ovation Fertility to US Fertility

Investment funds managed by Morgan Stanley (NYSE:MS) Capital Partners (“MSCP”), the middle-market focused private equity team at Morgan Stanley Investment Management, have entered into an agreement to sell Ovation Fertility (“Ovation”) to US Fertility (“USF”). Financial terms of the transaction were not disclosed.

Ovation, headquartered in Nashville, Tennessee, is a leading provider of fertility laboratory services, including in-vitro fertilization laboratory services (“IVF”), genetic testing, egg and embryo storage and other services for the fertility industry. USF, which is headquartered in Rockville, Maryland, and backed by Amulet Capital Partners, a middle-market private equity investment firm focused exclusively on the healthcare sector, is the largest partnership of physician-owned and physician-led top-tier fertility practices in the United States, offering comprehensive non-clinical, administrative, and technical platforms that help domestic and international practices improve patient outcomes and increase patient access.

“Through our successful partnership with Ovation’s management team and physician shareholders, led by CEO Paul Kappelman, the company is executing on its purpose to deliver innovative science and cutting-edge care and support to patients through every stage of the continuum of fertility care,” said Steve Rodgers, Managing Director and Head of Healthcare at MSCP. “We are proud to have collectively built the business into a leading reproductive care provider, and we are grateful for their hard work and dedication.”

“The combination of USF and Ovation brings together practices form entirely complementary geographies and creates a platform that will facilitate best practice sharing across both companies to improve clinical results and patient outcomes for more patients in more locations,” said Paul Kappelman, CEO of Ovation. “MSCP has been a value-added partner to the business throughout Ovation’s journey and we thank them for their support. We are enthusiastic about the opportunity to be a part of USF, where we believe the combined company will be a leader in the industry with an ability to drive world-class patient outcomes.”

Harris Williams acted as financial advisor to Ovation, while DLA Piper served as legal advisor to MSCP.

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 services, consumer, healthcare, education and industrials 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.