Top Investor Tuesday — Healthcare devices & supplies
February 17, 2016
This month we have seen PE firms receive some hefty offers for healthcare device & supply companies in their portfolios: Madison Dearborn Partners agreed to sell Sage Products to Stryker (NYSE: SYK) for almost $2.78 billion, while Permira is set to sell Creganna Medical to TE Connectivity (NYSE: TEL) for $895 million. These announcements speak to a growing trend as, according to the PitchBook Platform, PE investor activity in the industry has heated up in recent years.
In 2015, PE firms completed 142 deals in healthcare devices & supplies, just about matching 2014's peak and marking a near 25% jump from the 114 deals in 2012. Interestingly, PE-to-PE activity has picked up in the space. GPs predominantly sold healthcare device & supply companies to strategics from 2009 to 2014, but last year saw SBOs account for 55% of these exits, surpassing corporate acquisitions (43%). This trend is likely a result of today's dealmaking environment, as GPs have been looking to develop in particular niches to find opportunities, often finding them in other PE portfolios.
Here are the top PE investors in global healthcare devices & supplies since 2009, along with their deal counts (including add-ons):