Avista-led group exits medical waste company for $185m

The VC consortium in 2006 invested $70m in MedServe, which collects, transports and disposes of medical and hazardous waste.

A group of venture firms led by Avista Capital Partners has sold medical waste disposal company MedServe to Nasdaq-listed Stericycle for $185 million.

The investor group bought into MedServe in 2006 with a $70 million investment, $50 million of which came from Avista, a firm that spun out of DLJ Merchant Banking in 2005. Chrysalis Ventures and Murphree Venture Partners also were part of the investment group.

MedServe collects, transports, treats and disposes of medical, hazardous and other kinds of wastes, and also provides safety and compliance services. Stericycle, also a medical waste company, has recently traded as high as $51.58. The company’s 52-week high is $66.15.

Kentucky-based Chrysalis closed its fourth fund on $163 million last year after 18 months of fundraising. Murphree Venture has been around since the mid-1970s and has invested in more than 85 companies.