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GenStar Buying Radiation Provider

GenStar Capital LLC, a San Francisco-based private equity firm, said Monday that it bought Newport Beach-based OnCure Medical Corp., a radiation therapy provider.

Terms of the deal weren’t disclosed.

Privately held OnCure owns, operates and manages 33 radiation clinics in California and Florida. It employs about 350 workers.

OnCure’s centers offer radiation therapy and diagnostic radiology such as CT, IMRT, and PET.

The company also provides management services, including billing and collection as well as data warehousing, to affiliated physician groups

Dr. Shyam Paryani, chairman and medical director, and Jeffrey Goffman, president, founded OnCure in 1998. Richard Zehner, a former chief executive of Anaheim-based Alliance Imaging Inc., is OnCure’s chief executive.

Company investors included Crossbow Ventures, a Palm Beach, Fla.-based private equity firm, Boston’s Halpern, Denny & Co. and Wellesley, Mass.-based private equity firm MedEquity Capital LLC.

In a release, GenStar said that the U. S. radiation therapy market is highly fragmented. GenStar “will be able to tap into a rich pipeline of opportunities as we execute strategic acquisitions into new geographic regions and existing markets,” said Robert Weltman, Genstar’s managing director.

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