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Back to blog May 16, 2019 No Comments Author: Andy Jones

Private Equity Investing in Medical Device Companies

Medical device companies often provide two attributes highly valued by private equity firms – high margins and good growth metrics. It’s no surprise then that we noticed a trend of private equity firms investing in Medical Device companies. Today, we explore this trend across a 20-year horizon (for platform investments).

Private Equity Acquisitions of Medical Device Companies by Year

Most Active Private Equity Firms in the Medical Device Space

Over the past 20 years, each of these PE firms have made 6 or more platform investments in the Medical Device space:

  1. Polaris Partners (12 investments)
  2. Seventure Partners (12)
  3. Aisling Capital (9)
  4. OrbiMed Advisors (9)
  5. Baird Capital (8)
  6. Warburg Pincus 8)
  7. H.I.G. Capital (7)
  8. Accelmed (6)
  9. EDBI (6)
  10. GIMV (6)
  11. Montreux Equity Partners (6)
  12. Pappas Capital (6)
  13. RoundTable Healthcare Partners (6)
  14. SV Health Investors (6)

Recent Sample Transactions

Interestingly, almost all recent PE acquisitions of Medical Device companies have been of companies based outside the U.S. There’s also a mix between companies that produce a specific specialty medical device and those that are more general manufacturers and distributors of a broad array of medical devices.

Fertility Focus (Warwick, UK)

2019 – Foresight Group LLP made a £1.25 million growth capital investment into Fertility Focus Limited.

Fertility Focus Limited is a fertility monitoring technology company that has developed OvuSense, a registered medical device that enables women to predict ovulation.

Kalon Biological (Guildford, UK)

October 2018 – CalibreScientific acquired Kalon Biological Limited and Clin-Tech Limited, owned by StoneCalibre.

Kalon Biological specializes in the development and manufacture of in vitro diagnostic medical devices, commercial immunoassay kits, stains, reagents, and CE-marked clinical diagnostic assays focused on measles, mumps, and rubella testing.

LPG Systems SA (Edgware, UK)

September 2018 – Carlyle Group (Carlyle Europe Technology Partners III Fund) invested in LPG Systems SA.

LPG Systems SA is a manufacturer and distributor of non-invasive medical devices for body shaping, facial rejuvenation and physiotherapy.

Mdoloris Medical Systems (Loos, Nord, France)

July 2018 – Seventure Partners invested in Mdoloris Medical Systems.

Mdoloris Medical Systems manufactures and promotes innovative medical devices able to continuously and non-invasively assess patient’s pain in order to help clinicians to personalize the painkiller’s delivery and thereafter to prevent known side effects due to over and under dosages.

Surgical Specialties Corporation (Wyomissing, PA)

July 2018 – Aretex Capital Partners made a minority investment in Surgical Specialties Corporation.

Surgical Specialties Corporation (SSC) is a global medical device company focused on high performance wound closure products and surgical knives.

TRiCares (Paris, France)

June 2018 – TRiCares SAS announced a €22 Million ($25.4 Million) Series B financing round. The financing round was led by incoming investors Wellington Partners, Germany, Andera Partners, France, and BioMed Partners, Switzerland and the existing French syndicate of CM-CIC Innovation, CapDecisif Management and GO Capital.

TRiCares is a medical device company, devoted to developing a catheter-based valve replacement system for minimal invasive treatment of tricuspid valve regurgitation.

Medhold (Gauteng, South Africa)

May 2018 – Old Mutual Private Equity invested in The Medhold Group.

The Medhold Group is a supplier of medical devices and technology to the healthcare sector. Medhold offers a holistic supplier service to clients, vital clinical engineering support, consulting services and information technology systems.

LifeHealthcare (North Ryde, Australia)

May 2018 – Pacific Equity Partners Fund V acquired 100 per cent of the share capital in ASX-listed LifeHealthcare Group Limited (LifeHealthcare) for $3.75 per share.

LifeHealthcare is an independent medical device distributor. LifeHealthcare also provides associated value-added services to suppliers and surgeons, including regulatory management, clinician training and surgical consultation on device selection and application.

Healthium MedTech (Bengaluru, India)

April 2018 – Quinag Acquisition (FDI) Limited, a company backed by funds advised by Apax Partners, acquired a controlling stake in Healthium MedTech Private Limited (previously known as “Sutures India”) from existing shareholders including TPG Growth, CX Partners, and founding shareholders.

Healthium MedTech manufactures and sells medical devices and consumable products including wound closure products, minimally invasive products like endo surgery and arthroscopy consumables, and urology products.

Promamec (Agdal Riyad, Morocco)

March 2018 – AfricInvest invested in Promamec.

Promamec is specialized in the manufacturing and distribution of medical and paramedical devices.