Private Equity Deal Spotlight | Weekly Update

Health care continues to drive private equity (“PE”) activity, creating opportunities for investors and traditional health care providers. Transactions in the health care space are especially complicated, layering health care regulatory and reimbursement considerations on top of a complex securities, antitrust, privacy and security framework.

Hall Render’s PE team of attorneys and advisors leverage the strength and depth of our bench to navigate and efficiently execute PE transactions. The summary below includes highlights of recent PE deals and legislative updates.

• CVC Capital Partners signed a definitive agreement with Mallinckrodt, PLC to acquire Therakos for $925 million. Therakos is a fully integrated extracorporeal photopheresis delivery system for autologous immunomodulatory therapy located in Bridgewater, New Jersey. CVC Capital Partners plans to leverage their platform to bring Therakos’ innovative treatment to patients around the world. CVC Capital Partners is an international private markets manager with investments in the business services, health care and technology industries.
• Consello Capital announced the purchase of New York-based EHE Health, a network provider of preventative health care. The transaction increases Consello Capital’s growing portfolio with a national network of more than 200 clinics and physician practices. Consello Capital is the PE arm of Consello with investments in the business services, consumer and retail sectors.
• Platinum Equity announced the acquisition of ASP Global, a developer and distributor of consumable medical products to health systems and labs located in Atlanta, Georgia. The acquisition furthers ASP Global’s goal of creating new opportunities to serve the evolving needs of its customers through the utilization of Platinum Equity’s access to capital and operational expertise. Platinum Equity is an investment firm with a footprint in the health care, technology and consumer industries.
• Knack Global, LLC, a technology-enabled, revenue cycle management solutions provider, completed the purchase of Lexington, Kentucky-based Merrick Management, Inc. Merrick Management provides revenue cycle management, practice engagement, accounting and tax services to anesthesia providers across the Southeast and Midwest. The transaction marks Knack Global’s ninth acquisition since its formation in 2007. Through this acquisition, Knack Global plans to expand its revenue cycle management solutions and specialties into the anesthesia market. Knack Global is backed by Weave Growth Partners, a private investment firm based in Silicon Valley and LKCM Headwater, L.P., a Texas-based PE firm.
• TempoPay, a health care financing and payments platform, was acquired by PayMedix. PayMedix is a health care financing and payment solutions provider owned by Health Payment Systems, a health care technology and services organization. PayMedix seeks to develop a comprehensive financing and payments platform through the addition of TempoPay’s financing offerings for everyday health care expenses.
• Avista Healthcare Partners completed the acquisition of Trillium Health Care Products from New Water Capital, L.P. Headquartered in Ontario, Trillium Health Care Products is a contract developer and manufacturer of branded, over-the-counter products throughout North America. Avista Healthcare Partners is a New York-based PE firm with investments in the health care sector. New Water Capital is a PE firm based in Boca Raton, Florida with a focus on lower-middle-market companies in the consumer products and industrial manufacturing and services sectors.
• HouseWorks Holdings, LLC, a personal care services platform serving the Northeast backed by InTandem Capital, closed its acquisition of Bridge City Home Care, LLC. Bridge City Home Care is a personal care services provider based in Pittsburgh. Following the acquisition, HouseWorks Holdings expanded its footprint across Pennsylvania as it provides its BetterCare at HomeTM model to Medicaid and dual-eligible Bridge City Home Care clients. InTandem Capital is a PE firm located in New York with investments throughout the health care services sector.