An aging population, better access to care and a desire to stay active are driving more people into surgery, boosting demand for surgical equipment providers that include developers, manufacturers and distributors. Private equity has taken notice, drawn to the sector's high barriers to entry, including entrenched customer relationships and strict regulations.
"From a strategy perspective, PE-backed platforms enjoy multiple paths to scale while helping clinicians enhance the perioperative experience," Paul Tomasic, managing director and head of European healthcare at Houlihan Lokey, told PE Hub. "Expanding breadth of product offering, from surgical essentials to procedure-specific instruments, remains a proven growth lever."
PE Hub rounded up six recent deals in the surgical equipment provider market. In September, Avesi Partners acquired New Age Medical, a St Louis-based supplier of spinal surgical products, from Compass Group Equity Partners. In August, Montagu and Kohlberg closed a $1.5 billion carve-out of Teleflex Medical OEM from Teleflex Incorporated, which came out to $1.25 billion after tax. Teleflex Medical OEM, headquartered in Plymouth, Massachusetts, develops and distributes surgical fibers, sutures and interventional catheter components.
In June, Apollo Global Management announced a minority stake in the medical-surgical solutions business of McKesson for $1.25 billion, valuing the business at $13 billion. McKesson, based in Irving, Texas, will retain majority ownership. G Square completed its acquisition of Serres, a Kauhajoki, Finland-based maker of sustainable surgical fluid management technology, while Cinven invested in Regenity Biosciences, a Paramus, New Jersey developer of bioresorbable technologies backed by Linden Capital Partners.
Source: PE Hub · Summarized by HeadlinesBriefing