Harbert in Australian healthcare deal

The small-cap firm has acquired a Melbourne-based medical equipment company as the third deal from its current fund.

Harbert Australia Private Equity has bought a more than 80 percent stake in Cardioscan, an Australian cardiovascular and respiratory monitoring service provider, for A$13 million (€10.5 million; $13.7 million), according to Jeremy Steele, senior managing director of Harbert.

The funding came from the firm’s Harbert Australian Private Equity Fund II, combined with A$4 million of debt, Steele told Private Equity International. Cardioscan is the third investment from Fund II. 

Harbert has gained two out of three board seats on the company, but has not changed the company’s top management, according to a joint statement.

“Succession and expansion funding are in high demand in the growth sector, which has a shortage of capital,” Steele said. Cardioscan now has plans for medium-term expansion and growth, including the hiring of five new management staff. 

“Cardioscan has a major role to play in the fight against [cardiovascular disease] in this country and in reducing its enormous burden on the Australian economy,” Steele said in a statement. “In addition, Cardioscan has secured the exclusive Australian distribution rights for a revolutionary new cardiac monitoring device.”

Harbert Australia Private Equity is a sponsored affiliate of Harbert Management Corporation in the US, which has $2.9 billion in assets under management. The private equity affiliate closed its maiden fund on A$40 million in September 2010 and focuses on the lower-middle market in Australia, particularly on enterprises valued between A$10 million and A$100 million.