Sentinel combines leading interventional pain management companies

National Spine & Pain Centers and Capitol Spine & Pain Centers Merge to Form Leading Provider of Interventional Pain Management Treatment

NEW YORK, March 23, 2012 – Sentinel Capital Partners, a private equity firm that invests in promising, lower middle market companies, today announced its portfolio company National Spine & Pain Centers has acquired Capitol Spine & Pain Centers. Management teams from both companies partnered with Sentinel in the transaction. Terms of the deal were not disclosed.

The combined company is the nation’s leading provider of management services to physicians specializing in interventional pain management procedures focused on relieving back and neck pain. Operating in 22 facilities in Maryland, Virginia and the District of Columbia, affiliated physicians of National Spine & Pain Centers and Capitol Spine & Pain Centers treated more than 40,000 patients in 2011.

“Our two businesses are the leaders in providing advanced, minimally invasive treatment options for patients in the Mid-Atlantic region,” said Drs. Bobby Dey, Marc Loev and Les Zuckerman, co-founders of National Spine & Pain Centers. “Our two organizations have the same mission—to provide a comprehensive approach to the treatment of pain through the use of advanced, minimally invasive, interventional procedures. We also have highly compatible cultures, and look forward to working closely with Capitol Spine & Pain Centers’ talented management team to expand the breadth of our services and our presence throughout the Mid-Atlantic.”

“We are very proud of everything that we have achieved and are excited about joining with National Spine & Pain Centers to create a true market leader,” said Drs. Mayo Friedlis, Doug Wisor and Assaf Gordon, board members of Capitol Spine & Pain Centers. “We have seen the success of National Spine & Pain Centers’ partnership with Sentinel, a private equity firm with a great track record of supporting management teams seeking to build stronger healthcare businesses. We are very excited to join this partnership.”

“With chronic and debilitating pain affecting more people in the United States than diabetes, heart disease and cancer combined, National Spine & Pain Centers addresses a crucial need for its patients and is well positioned in an exciting and fast growing healthcare specialty,” said Paul Murphy, a partner at Sentinel. “We are proud to be partners with these two extraordinary groups as they endeavor to integrate and grow their business.”

Sentinel’s investment in National Spine & Pain Centers continues the firm’s focus on healthcare. In November 2011, Sentinel acquired WellSpring Pharmaceutical Corporation, a North American manufacturer and marketer of specialty prescription and over-the-counter pharmaceuticals. Sentinel’s investments in National Spine & Pain Centers and WellSpring Pharmaceutical Corporation bring to eight the number of healthcare investments completed by Sentinel in the past seven years. Other current Sentinel healthcare holdings include Interim Healthcare, the nation's largest provider of home nursing care and Massage Envy, the nation’s largest provider of therapeutic massage services. Sentinel successfully exited two healthcare investments in 2010, including ReachOut Healthcare America, the nation’s leader in mobile dental services, and Strategic Partners, a leading provider of medical uniforms. In 2007, Sentinel sold Metro Dentalcare, a regional multi-specialty dental group, to American Dental Partners (NASDAQ:ADPI), and in 2004, Sentinel sold Castle Dental Centers, a leading regional dental services provider, to Bright Now! Dental.