SOURCE: ABS Capital Partners

February 09, 2007 08:00 ET

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 -- (MARKET WIRE) -- 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 an unrivaled provider network of over 32,000 providers 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 Wal-Mart. 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 of over 32,000 providers 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

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

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 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 Information

  • Contact:
    Karen O'Brien
    Superior Vision Services, Inc.
    (916) 859-6229
    Email Contact

    Stephanie Manuel
    ABS Capital Partners
    (410) 246-5609
    Email Contact

    Michelle O' Brien
    ORIX Venture Finance LLC
    (212) 497-7802
    Email Contact

    Curt Rocca
    DCA Capital Partners
    (916) 960-5353
    Email Contact