PE HUB Healthcare Wire Highlights, 5.2.19

May blooms with big exit for Apax, GA grows healthcare practice

Hi, everybody!

The sun is out and it’s a newsy day in healthcare private equity.

Today’s rundown includes a several-billion-dollar deal and a notable mover and shaker.

Just inApax FundsCanada Pension Plan Investment Board and Public Sector Pension Investment Board struck a deal to sell Acelity for $6.7 billion, a statement said. The buyer is 3M.

For London’s Apax, the deal represents a more than 3x multiple of invested capital, a source familiar with the matter said. The return reflects Acelity’s $2.9 billion divestiture of LifeCell in 2017 and its $275 million sale of its Therapeutic Support Systems business in 2012.

The Apax-led group has owned the world’s largest maker of advanced wound care and specialty surgical products since 2011, having acquired its predecessor Kinetic Concepts Inc in a $6.1 billion LBO.

Acelity in the time since has transformed under the backing of its investors as both a buyer and seller of assets.

After the company called off an initial public offering in 2016, news reports in late 2018 suggested it once again was mulling a return to the public markets. Its KCI Holdings affiliate filed an S-1 in April.

I’ll have a full story on the transaction, plus some updates on the durable medical equipment deal front. Stay tuned!

On the move

It’s a competitive world, ladies and gents.

General Atlantic has poached Justin Sunshine from Blackstone Group to help pursue growth investments in healthcare, I learned this week.


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