Buyers circle specialty vet hospital groups, H.I.G. injects $225m in healthcare insurance marketplace

Vet care deals are on the rise and H.I.G. backs eHealth.

Happy Tuesday, everyone!

Today, we have news on two large specialty vet care deals: BBH Capital Partners-backed Ethos Veterinary Care and SAGE Veterinary Centers, owned by Chicago Pacific Founders, are looking for new owners, PE Hub has learned.

The simultaneous processes come as healthcare for pets has proven resilient through the pandemic, only validating the durability of the space long touted by investors.

Ethos is working with BofA Merrill Lynch and Jefferies is running the sale for Concord, California-based Sage. The latter is a little further along in its sale process, while first round bids are coming up soon for Ethos, some of the people said.

Both Ethos and Sage seem poised for strong outcomes as capital continues to flood into veterinary care. Alongside underlying trends like the humanization of animals, vet care providers were declared essential services in all 50 states early on in the pandemic.

The pair of companies are expected to draw significant interest from large buyout funds eager to invest behind the multiple tailwinds as well as large PE-backed strategics looking to build out their specialty operations.

Sources expressed conflicting views on which of the two is more likely to go to a PE-backed platform, as opposed to pure play sponsor outcome.

Check out Sarah’s full report for details on potential bidders and valuation.

More healthcare: H.I.G. Capital announced a $225 million minority investment into a health insurance marketplace called eHealth. Comprised of eHealth.com and eHealthMedicare.com, the Santa Clara, CA-headquarted company provides consumers with health insurance enrollment solutions.

Examples include Medicare Advantage, Medicare Supplement and ancillary health insurance products from over 180 health insurance carriers.

H.I.G. has previous investments in the direct-to-consumer and healthcare industries. Last month, the private equity firm made an investment in Concord USA, a leading technology consulting platform serving enterprises in the healthcare, technology, manufacturing, and financial services space. Read the brief on PE Hub.

That’s it! Have a great week ahead. As always, hit me up with tips, feedback and your comments at karishma.v@peimedia.com.