New Mountain to buy Strategic Partners: source, FTC filing

New Mountain Capital is acquiring Strategic Partners Inc, a medical-apparel company, from owners Partners Group Holding AG and Avista Capital Partners, a source familiar with the situation said.

It’s not clear how much Strategic Partners fetched. News of the Strategic Partners sale to New Mountain first appeared on the FTC website.

New Mountain is using its fourth fund to invest in Strategic Partners, the June 7 FTC filing said. New Mountain’s fourth fund closed at $4.13 billion in 2014. Performance data for the pool was unavailable.

Partners Group and Avista put Strategic Partners up for sale earlier this year, Bloomberg News reported in March. Robert W. Baird advised on the auction, the story said. Strategic Partners could fetch as much as $900 million, the story said.

Established in 1995, the Chatsworth, California, company designs, makes and distributes medical apparel under brands including Cherokee, Dickies and Sapphire Scrubs. Strategic Partners also makes medical footwear as well as medical instruments and accessories, its website said.

The sale to New Mountain represents at least the third time a private equity firm will own Strategic Partners.

Partners Group and Avista acquired the company in September 2012. BAML Capital Partners was the seller, The Wall Street Journal reported. (Bank of America spun off BAML, its PE fund, in 2011, Reuters reported.)

An investor group mainly comprised of BAML Capital Partners and company management acquired Strategic Partners in 2010, Moody’s Investors Service said at the time.

Executives for Strategic Partners, Partners Group, Avista and Baird could not be reached for comment.

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Photo of Cherokee medical uniform courtesy of Strategic Distribution