PE HUB Healthcare Wire Highlights, 9.12.19

Investors are still howling for vet care

It’s Thursday, healthcare enthusiasts.

Right on schedule, loads of deal books are going out or preparing to go out this fall.

New on my radarCourt Square’s high-end custom wheelchair company, National Seating & Mobility, which kicked off a process in August, and healthcare tech and payor services company, Centauri, which I’m told is seeking a sponsor recap. Across the pond, Curium, the nuclear medicine company owned by Capvest, has hired banks to consider options.

Puppy love

Of course, it wouldn’t be a new season of healthcare M&A without another hot opportunity to keep tabs on one of investors’ favorite multisite segments … I’m talking about medical care and wellness for pets. That “forever” type of asset that everyone still obsesses over amid the humanization of pets: Vet care.

Believe it or not, big platforms keep emerging. TBD if valuations keep breaking records already in the upper-teens to 20x Ebitda multiple zip code.

(For context, one sponsor told me recently that years ago when vet investments were first being done, individual assets traded at 5x or 6x, while a platform might go for 9x or 10x.) Wow!

I learned this week that Morgan Stanley Capital Partners has enlisted a slew of banks to evaluate strategic alternatives for Pathway Vet Alliance, a vet care company that has grown rapidly. A process has yet to formally launch, but I’m told both a sale and potential IPO will be weighed.

Read my full story for financial detail and more.