Baird and Lubar to sell healthcare design firm for $247m

Baird Capital Partners and Lubar & Co. will contribute $85 million in rollover equity to finance the acquisition by REIT Cogdell Spencer.

US middle market firms Baird Capital Partners and Lubar & Co. have agreed to sell 100 percent of their interest in medical facility design firm Marshall Erdman to healthcare-focussed real estate investment trust Cogdell Spencer for $247 million (€168 million).

The acquisition, which is expected to close in February, will be financed by a $100 million term loan and a $150 million secured line of credit provided by KeyBank National Association, Bank of America, Branch Banking and Trust Company, M&I Marshall & Ilsley Bank and Wachovia Bank, as well as $85 million in rollover equity held by Baird and Lubar.

Baird and Lubar jointly acquired the company in January 2004. The sale price was undisclosed, but in 2003 Marshall Erdman had revenues of $225 million.

“By integrating Erdman’s platform with Cogdell Spencer’s extensive portfolio management, the company will offer the full range of healthcare real estate services to an expanded client base that includes healthcare systems, physician tenants and practice groups,” Cogdell Spencer said in a statement.

Baird Capital is part of the private equity arm of global investment firm Robert W. Baird & Co. The firm focusses on late-stage growth or change-of-control investments in US middle market companies in the business services and manufactured products sectors, and last year raised $300 million for Baird Capital Partners IV and €350 million for its affiliated German fund, GB Deutschland.

Lubar is a Milwaukee, Wisconsin firm that invests in middle market companies across a range of industries. The firm acquired a 30 percent stake in money management firm Optique Capital Management earlier this month for an undisclosed amount.