Levine Leichtman Capital Partners is close to sealing a pair of new healthcare investments, pre-merger filings on the FTC website show.
Beverly Hills, California-based LLCP is buying medical technology company Capsa Solutions LLC from Keystone Capital Inc through its Fund VI, according to a recently filed HSR early termination notice. Separately, LLCP through Fund V is acquiring healthcare IT provider Therapeutic Research Center from Francisco Partners, another HSR notice showed.
For LLCP, the deals come as the middle-market firm is fundraising for its sixth pool, with a $2.2 billion target, a May SEC filing showed. LLCP in 2014 closed its fifth fund at $1.65 billion.
Capsa and TRC are also the first U.S.-based healthcare investments for LLCP since it sold Senior Helpers to Altaris Capital Partners in October. LLCP scored a 74 percent IRR and 10.1x multiple of invested capital in the sale of the franchiser of in-home companion care and personal care to seniors.
In the seemingly larger of the two new investments, LLCP is acquiring Capsa, which is projecting roughly $30 million of EBITDA in 2017, according to one source.
Formed through a series of acquisitions, Capsa is the Portland, Oregon, maker of mobile, point-of-care workstations, medication management systems and pharmacy automation systems, among other things. Its products are found in nursing homes, assisted living facilities, hospitals, pharmacies and ambulatory care centers worldwide.
Chicago’s Keystone made its initial platform investment in December 2000 in a company then called IRSG. The company was renamed Capsa in 2008 after merging with medication-cart maker MMI Med Carts.
Capsa’s latest purchases include Newell Rubbermaid’s healthcare division and privately held Kirby Lester, in 2015 and 2014, respectively.
Therapeutic Research Center sale
LLCP’s deal for TRC marks the conclusion of a William Blair-run sales process. Buyouts reported in June that technology-focused Francisco was seeking a buyer for its close to five-year investment.
TRC, Stockton, California, provides evidence-based drug-therapy recommendations, continuing-education programs, training and data that help doctors stay informed and make decisions when treating patients.
The company generates EBITDA of $12 million, a source familiar with the company said.
Other providers of evidence-based clinical decision-support services include the Mayo Clinic and Cleveland Clinic, as well as Zynx Health, a business purchased in 2004 by Hearst Corp through its business-media division.
LLCP’s other healthcare investments include Caring Brands, Genova Diagnostics, Monte Nido and ZorgDomein.
Representatives of LLCP declined to comment, while those with Keystone and Francisco Partners did not return requests for comment.
Action Item: View LLCP’s current portfolio: http://www.llcp.com/portfolio
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