Bain Capital is exiting Physio-Control International Inc after a four-year hold.
Stryker Corp has agreed to pay $1.28 billion for the Redmond, Washington-based company, which makes and supplies emergency medical response products like external defibrillators.
Bain acquired Physio-Control in January 2012 from Medtronic for about $487 million. The deal included $170 million in equity and $315 million in loans, Moody’s Investors Service said in a January 2012 note.
Bain has already gotten back more than half of its investment. In 2015, Physio-Control used $480 million in loans to repay debt and fund a roughly $113 million dividend to its sponsor, as well as pay related transaction fees, Moody’s said.
Physio-Control, in September, acquired HeartSine Technologies Inc, an Ireland-based maker of automatic external defibrillators. The company used $63 million in incremental bank debt to fund the deal, Moody’s said.
It’s unclear exactly how well Bain has done with the investment. Based on the purchase price, the firm appears to be making nearly 3x its investment. Executives for Bain declined comment.
Bain used its tenth fund to invest in Physio-Control, according to an FTC filing. Bain Capital Fund X LP collected $10.7 billion in 2008. Fund X produced a 6.5 percent net IRR and a 1.28 investment multiple as of March 31, according to the Regents of the University of California, an LP in the fund.
Action Item: Contact Physio-Control at 800-442-1142
Photo of defibrillator courtesy of Shutterstock