- Metalmark investment dates to October 2014
- CEO Doedens is former Biomet 3i, Sirona exec
- Collagen Matrix could fetch $350 mln-$400 mln valuation
Metalmark Capital is evaluating the sale of Collagen Matrix, a medical-device company focused on tissue repair and regenerative medicine, according to four people familiar with the matter.
Piper Jaffray and Robert W. Baird are conducting the sales process, some of the people said.
The initial bid deadline was last week, two people said. The deal ought to command a valuation of $350 million to $400 million, two of the sources said.
Collagen Matrix expects to produce Ebitda of $30 million in 2019, while 2018 Ebitda sat close to $25 million, some of the people estimated.
Collagen is the Oakland, New Jersey, developer of collagen- and mineral-based medical products to support the body’s natural ability to regenerate.
The company’s customers are OEMs that operate across its end markets: dental, spine, orthopaedic, dural repair and nerve repair.
Industry veteran Bart Doedens heads the company as CEO. Before joining Collagen Matrix, the executive most recently was president of dental-implant maker Biomet 3i.
Doedens previously held executive roles at Sirona Dental, Atlas Spine Biomet and Covidien (then Mallinckrodt Medical).
While the sales process is likely to be sponsor-heavy, sources pointed to global chemicals company Royal DSM as one of a few logical strategic buyers.
DSM in 2012 showed its commitment to biomedicals when it purchased Kensey Nash through the merger with its subsidiary Biomedical Acquisition Corp.
The Kensey Nash transaction was assigned a valuation of about $360 million. Based on publicly available financial information at the time, the valuation represented an Ebitda multiple in the 12x to 13x range.
While there could be a short list of other strategic buyers, the end markets in which Collagen Matrix plays suggest it may not be well-suited for many, one source cautioned.
A sale to an OEM may also be a conflict of interest, as many customers would end up being competitors, another source said.
Metalmark’s investment in Collagen Matrix dates to October 2014.
The New York private equity firm has several investments in the healthcare sector, including Aegis Sciences, Healogics, Innovetive Petcare, Premier Research and Sebela Pharmaceuticals.
Metalmark was formed in 2004 by former principals of Morgan Stanley Capital Partners to manage the Metalmark Capital and Morgan Stanley Capital Partners funds.
Representatives of Metalmark, Collagen Matrix, Piper Jaffray and Robert W. Baird did not return requests for comment.
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