Clayton Dubilier and Rice will acquire Healogics, the largest advanced wound care services provider in the US, from Metalmark Capital and Scale Venture Partners. The transaction is valued at $910 million and is expected to close later this year.
Healogics operates roughly one-third of all hospital outpatient wound care centres in the US. The company also operates Sechrist Industries, the leading global manufacturer of hyperbaric oxygen therapy chambers used in advanced wound care. JP Morgan Securities, Credit Suisse, BofA Merrill Lynch, Citigroup Global Markets and Morgan Stanley are providing debt financing for the transaction.
The investment comes from CD&R’s Fund IX, which came to market last year and is 30 percent invested, according to a source familiar with the fund.
Other investments from this fund include Brand Energy, which CD&R recently combined with Harsco Corporation’s infrastructure business to create Brand Energy & Infrastructure Services. PharMEDium, Ashland Water Technologies, and Mauser make up the remaining companies in the fund so far.
Earlier this month, CD&R closed its Fund IX on $6.4 billion. The fund had a $6 billion hard-cap and was oversubscribed. Fund IX includes a GP commitment of $434 million, or 7 percent. Fund IX came to market in March 2013 and held an initial close on $3 billion last August. Fund IX will invest in between 12 and 15 companies across a variety of industries.