Barriers to entry are an attractive driver for private equity firms with existing scale in a sector, particularly in healthcare. This morning, we examine two markets: surgical equipment providers and radiopharmaceuticals. In surgical equipment, firms like Apollo, Kohlberg, and Montagu are active, drawn by entrenched customer relationships and strict regulations.
Paul Tomasic of Houlihan Lokey notes that PE-backed platforms can scale by expanding product offerings from surgical essentials to procedure-specific instruments and into adjacent sterile processing workflows. Six deals in the surgical equipment provider market since early 2026 include two above $1 billion: Montagu and Kohlberg’s August close of a $1.5 billion carve-out of Teleflex Medical OEM from Teleflex Incorporated (valued at $1.25 billion after tax), and Apollo Global Management’s April-announced minority stake in McKesson’s medical-surgical solutions business for $1.25 billion, valuing MMS at $13 billion. Additional activity includes GTCR’s agreement to sell Corza Medical’s biosurgery unit to EQT, expected to close toward end-2026 or early 2027, and Apheon’s agreement to acquire Teknimed, with closure expected by end-October.
In radiopharmaceuticals, Trilantic North America inked a $945 million sale of a manufacturer to GE Health Care, aided by the radiopharma boom. Strict regulations, global talent shortage, and limited infrastructure create high barriers to entry, favoring PE firms with existing platforms. Theranostics—using matched radiopharmaceuticals to image and treat disease—is pushing the sector forward.
Source: PE Hub · Summarized by HeadlinesBriefing