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.

• Cardinal Health recently announced two transactions in the gastroenterology and diabetes management industries for a combined $3.9 billion. Cardinal Health will purchase a 71% stake in gastroenterology care platform GI Alliance from its existing shareholders including Apollo Global Management for $2.8 billion in cash. Cardinal Health will also purchase Advanced Diabetes Supply Group, which delivers diabetes home care supplies, from Court Square Capital Partners for $1.1 billion. Apollo Global Management is a global asset management firm with over $99 billion invested in PE. Court Square Capital Partners is a PE firm based in New York City focusing on leveraged buyouts of middle-market companies.
• MB2 Dental announced a $525 million investment by Warburg Pincus. The recapitalization will result in a total enterprise value of more than $3.5 billion and offer liquidity opportunities to existing investors. MB2 Dental is the first and largest dental partnership in the United States. Warburg Pincus is a PE firm headquartered in New York City with more than $86 billion in assets under management.
• Rural Healthcare Group finalized its acquisition of Stewardship Health for $245 million. Stewardship Health, a physician group that was formerly a part of Steward Health Care, will be rebranded as Revere Medical following the transaction. Rural Healthcare Group is owned by Kinderhook Industries, a PE firm focusing on investments in the automotive, environmental services, health care services, industrial services and light manufacturing industries.
• Savillex, a portfolio company of Thompson Street Capital Partners, acquired Optimum Processing, Inc. Savillex’s acquisition of Optimum Processing is intended to enhance its portfolio of fluid handling and containment solutions. Thompson Street Capital Partners is a PE firm based in St. Louis, Missouri.

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