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Metalmark’s Collagen Matrix goes to Linden in ~$425 mln deal

William Blair advised Linden, while Golub Capital and Northwestern Mutual provided debt financing for the transaction.

Chicago’s Linden Capital has scooped up Collagen Matrix in a deal valuing the maker of collagen-based medical products at around $425 million, according to people familiar with the matter.

The transaction provides an exit for New York’s Metalmark Capital, whose investment dates to October 2014. Financial terms were not disclosed in the Thursday news release.

Buyouts reported in May that Collagen was up for sale via Robert W. Baird and Piper Jaffray. The company expects to produce approximately $30 million in 2019 Ebitda, the people said.

William Blair advised Linden, while Golub Capital and Northwestern Mutual provided debt financing for the transaction.

Linden, which invests exclusively in healthcare companies, outbid two strategic buyers, one of which was said to be global chemicals company Royal DSM, one person said. While there existed few logical strategic buyers for Collagen, the company could have fielded interest from the likes of Smith & Nephew, suggested another person.

Collagen, of Oakland, New Jersey, develops collagen- and mineral-based medical products to support the body’s natural ability to regenerate. The company’s customers are OEMs that operate across the orthopedic, sports medicine, dental and neurosurgery end markets. Products are sold on either a contract or private label basis, while the company also provides distribution, contract product development and contract manufacturing services. Bart Doedens, whose former executive roles span Biomet 3i, Sirona Dental, Spine Biomet and Covidien, works as CEO of Collagen.

In connection with the transaction, Linden Operating Partner Gerard Moufflet has joined Collagen’s board of directors.

Metalmark was formed in 2004 by former principals of Morgan Stanley Capital Partners to manage Metalmark Capital and Morgan Stanley Capital Partners funds. Michael Farah, now a partner at Linden, joined the firm in May 2014 from Metalmark.

Linden in July agree to sell Advarra to Genstar Capital in an about $1.3 billion deal, with plans to reinvest in the provider of compliance-related services for clinical research, Buyouts reported.

Representatives of Metalmark and Royal DSM didn’t return requests for comment, while Linden declined to comment.

Action Item: Check out Linden’s latest Form ADV: https://bit.ly/2VJgPQB