Exclusive: SFW Exits MD Buyline

The New York-based private equity firm has sold MD Buyline to Arsenal

New York-based SFW Capital Partners has sold MD Buyline to TractManager a portfolio company of Arsenal Capital Partners for an undisclosed sum.

Sources familiar with the fund say that SFW booked approximately 3.5x on the sale.

SFW acquired Dallas-based MD Buyline in 2011. The company provides healthcare analytics and supply chain spend intelligence capabilities to healthcare providers. Over its three-year ownership, SFW added business lines and expanded the company.

This is the second realization from SFW’s $300 million fund. The company sold AGDATA, a provider of agriculture analytics to Vista Equity Partners in July, PEI reported at the time. Sources say the majority of the fund is invested.

“The focus of our fund is investing in middle market analytical tools and related services companies,” Roger Freeman, partner at SFW tells Private Equity International.

SFW provides buyout capital and expansion capital to mid-sized companies. Investment size typically ranges from $15 – $75 million.

Arsenal was most recently in the news for its potential sale of Royal Adhesives and Sealants, a provider of specialty tapes, sealants and adhesives. Arsenal acquired the company from Quad-C Management in 2010, and has hired Credit Suisse to work on finding strategic exit points for the investment.