FFL Looking Good With Latest Deal

After more than two years of research, FFL Partners finally closed on its transaction to acquire Clarkson Eyecare for an undisclosed sum. As managing director Chris Harris puts it: “This was a long time in the making.”

FFL began looking into the optical market roughly two and a half years ago. The firm was mostly attracted to the area’s secular growth, which was not usually tied to market cycles. (After all, vision care is typically a medical necessity). Also, the sector does not deal with a lot of government reimbursement programs.

As part of the due-diligence process, FFL proactively reached out to more than 30 companies for investment, including Clarkson Eyecare. Based in St. Louis, Clarkson is one of the largest optometry chains in the Midwest. The company has 63 locations in Missouri and Southern Illinois and another 19 in Ohio and Northern Kentucky.

FFL kept in touch with Clarkson Eyecare’s president and CEO, Anthony Nunn, for the two-plus years that the firm was looking at the company, building a relationship in the process. As part of the deal that closed on April 2, Nunn and the rest of the management team will remain with the company to run the day-to-day operations. FFL will partner with management on the overall strategy at the board level but will not get involved in the daily operations.

“We will provide them with the capital to deploy a strategy,”  explains.

Part of that strategy includes creating a national platform that will expand both organically and through add-on acquisitions. With more than 10,000 independent optometry businesses nationwide, there are many options for Clarkson Eyecare to expand rapidly. Harris says the size of each acquisition will depend upon individual deals. The company has done a good job of growing regionally, he adds, but plans for expansion now include a national footprint.

Clarkson was started in 1979 by Dr. Lawrence Jehling, who will remain with the company as co-chairman of the board of directors and will also provide strategic guidance. Since its founding nearly 35 years ago, the company has grown to serve more than 180,000 patients annually, offering ophthalmologic and LASIK services. The company has also developed a proprietary software platform that manages appointment scheduling, insurance verification, billing, and inventory.

For FFL, which has more than $4.5B in assets under management, the future looks bright for its latest acquisition. As Harris says, there is a lot to be excited about.

He describes Clarkson Eyecare as “a great platform from which to accelerate growth.”