Wound Care Company Healogics Acquired For $910 Million
By Jof Enriquez,
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Healogics Inc., owner and operator of the largest network of wound care centers and specialists in the United States, has recently been acquired by the New York-based equity firm Clayton, Dubilier & Rice LLC (CD&R).
The transaction, which is expected to be completed by the second or third quarter this year, is valued at $910 million, according to a recent CD&R press release.
“Healogics is the clear market leader in hospital outpatient wound care services which is a large, underserved market with sustainable long-term growth,” CD&R partner Kenneth A. Giuriceo said in the company press release. “We look forward to partnering with the company’s talented management team to continue to serve the increasing trend towards hospital outsourcing and the growing wound care population.”
Healogics’ nearly 600 wound care centers treated more than 215,000 patients in 2013 and constitute approximately one-third of all hospital outpatient wound care centers in the United States, according to the statement. The Jacksonville, Florida-based company has over 2,000 employees and has posted nearly $300 million in sales.
Jessica Taft, director of marketing and corporate communications at Healogics, said that the company needed additional funding beyond what former owner, Metalmark, could provide, according to an article in The Florida Times Union. She added that there will be no changes in the short-term.
“There’s no facilities closing, no job losses,” Taft said in the Times Union article. “Senior management will remain the same.”
“CD&R is well-known as a business builder, and has deep experience in closely related healthcare models,” Healogics president and CEO Jeff Nelson, who will continue to lead the company, said in the CD&R statement. “The firm shares our growth vision for the company and deep commitment to look for innovative ways to reach and treat people with chronic wounds everywhere we can, by the best means available.”
The deal was earlier reportedly in “advanced talks,” according to a Reuters report, citing anonymous sources. At that time, the sources said other bidders included TPG Capital LP, Ares Management LP and Leonard Green & Partners LP.