Water Street Healthcare Partners has sold its portfolio company Alpine Biomed to Natus Medical (NASDAQ, BABY) for $43.2 million in cash. Alpine Biomed manufactures specialty diagnostic devices for the neurology clinical market. Water Street acquired a majority stake in Alpine in 2007 to support its purchase of the neurology diagnostic product line of Medtronic (NYSE, MDT).
Since the beginning of 2006, private equity firms have exited 39 healthcare companies through sales to strategic corporate acquirers, according to the PitchBook Platform. The deal sizes for the companies combined to total over $4 billion, with numerous deals being completed for over $250 million. The average investment period for these private equity investors was just under four years. The shortest hold period was 294 days, the time it took TA Associates' to flip Alere Medical, which it acquired a majority stake in for $175 million and sold for $302 million to Inverness Medical Innovations (NYSE, IMA). Brown Brothers Harriman and Lighthouse Capital Partners held CMS for 11 years, making it the longest PE period of investment in a healthcare company.