PE Deals

Manufacturing-focused Altus makes second-ever healthcare deal via ChoiceSpine

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Altus Capital Partners, ChoiceSpine, healthcare, merger, M&A, private equity
Altus Founder and Senior Partner Greg Greenberg. Photo courtesy of the firm.
  • ChoiceSpine is second healthcare deal for Altus
  • Sell-side adviser: Quarton International
  • Altus took MGC private earlier this year for ~$50 mln

Manufacturing-focused Altus Capital Partners’ recent entry into healthcare may be a harbinger of more to come.

The firm on Tuesday disclosed its acquisition of ChoiceSpine, the Knoxville, Tennessee, maker of specialized spinal implants, instrumentation and biologics for the surgical treatment of complex spine disorders.

The acquisition represents the Wilton, Connecticut, middle-market firm’s second investment in healthcare.

The firm throughout its history has reviewed potential opportunities in healthcare, Altus Founder and Senior Partner Greg Greenberg said. Its first came less than a year ago.

Altus completed the take-private of medtech company MGC Diagnostics in January for $11.03 a share, or about $50.3 million.

It was the successful execution of the MGC transaction that largely set the stage for the firm’s investment in ChoiceSpine. Altus subsequently began receiving inbound calls on healthcare-related deals, Greenberg said.

That included ChoiceSpine, which Greenberg said hired Quarton International, a Detroit investment bank that earlier this week was acquired by Cowen & Co, to run a sales process.

“They knew our interest and appetite [for investments] was also inclusive of healthcare companies, so we saw the deal,” Greenberg said.

More specifically, through Altus’s manufacturing lens, ChoiceSpine fit the bill. The firm focuses on innovative companies that have deep design and engineering capabilities and strong market positions, he said.

“We’ll continue in the path of being very opportunistic of seeking investments in healthcare,” Greenberg said.

While terms of the ChoiceSpine transaction weren’t disclosed, Altus typically invests in manufacturing companies in niche markets. The firm invests in companies that generate more than $4 million in Ebitda.

ChoiceSpine Founders Rick Henson and Marty Altshuler will reinvest in the company as part of the transaction.

Altus invested in ChoiceSpine through Fund III.

Correction: A previous version of this story incorrectly identified the company as ClearSpine. The story has been updated with the correct company name.

Action Item: Reach out to Altus’s Greg Greenberg at ggreenberg@altuscapitalpartners.com