Private Equity News & Analysis

Freeman Spogli breathes in $460m cash exit

Shortly after closing its $1 billion Fund V, the Los Angeles-based firm has agreed to sell its medical products company Hudson Respiratory Care to Teleflex.

By
PEI Staff
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Shortly after closing its $1 billion Fund V, the Los Angeles-based firm has agreed to sell its medical products company Hudson Respiratory Care to Teleflex.

Los Angeles-based private equity firm Freeman Spogli has announced it will sell Hudson Respiratory Care to Teleflex for $460 million (€384 million) in cash.

California-based Hudson, which makes disposable medical products for respiratory care and anesthesia, will be integrated with Teleflex Medical, a division of Teleflex, which manufactures various healthcare supplies. Hudson reported 2003 revenues at $185 million, according to a statement.

The exit comes less than two months after Freeman Spogli at the end of March announced the close of its fifth fund, FS Equity Partners V, on $1 billion (€836 million). The fund, which originally targeted $900 million, attracted a number of notable investors including the California State Teachers’ Retirement System, the New York City Employees’ Pension Funds and the California Public Employees’ Retirement System.

Fund V will continue the firm’s strategy of investing in US middle-market companies in the retailing, direct marketing and distribution sectors. In a statement, Freeman Spogli called the target markets a compelling investments since they “large and highly fragmented, providing a wealth of attractive investment opportunities.”

Established in 1983, Freeman Spogli also operates a New York office and has invested more than $1.9 billion over the course of its lifetime.