PE Continues Frequent Discharge of Healthcare Services Companies
July 12, 2012
Huron Capital Partners has exited its investment in Labstat International via a recapitalization of the company's holding company, Apex Laboratories International, by private investment firm Alaris Royalty and Labstat management. Labstat provides chemistry and toxicology testing services to tobacco manufacturers and had been backed by Huron since 2006. The sale of the company generated a return of 6x its original investment for Huron.
Since the beginning of 2007, PE investors have completed 108 exits from U.S. or Canadian companies primarily involved in the Healthcare Services industry, according to the PitchBook Platform. The industry is on track for another year of strong exit activity with 19 exits already under its belt for 2012. With the sale of Labstat, the secondary buyout has just edged out the corporate acquisition to be the most popular exit strategy this year so far. On the other hand, most exiting PE investors are continuing to shy away from the public markets; 2012 has yet to see a completed PE-backed Healthcare Services IPO.
*2012 to date
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