US mid-market firm The Jordan Company has agreed to sell healthcare company Wound Care Holdings to National Healing Corporation, a portfolio company of Metalmark Capital. Terms of the transaction were not disclosed.
Wound Care Holdings specialises in chronic wound care, a “highly fragmented and underserved market”, according to a Jordan Company statement. The Jordan Company formed Wound Care Holdings in 2006 in partnership with The Edgewater Funds and JZ Capital Partners by combining five smaller businesses in the wound care sector. The company consists of two separate units, Diversified Clinics, an outsourced provider of wound care clinic management services, and Sechrist Industries, a manufacturer of respiratory care products.
“This business addresses a very significant demographic trend of people who are suffering from chronic non-healing wounds,” managing principal at The Jordan Company Adam Max told Private Equity International. “That’s a growing population due to the increase in diabetes, obesity and just the general aging of the population. The model, which was to be an outsourced manager for hospitals, was very attractive because it requires a specific expertise to manage wound care and there is no medical specialty today that is dedicated just to that proposition.”
The Jordan Company invested in Wound Care Holdings from its first fund that closed on $1.5 billion in 2002. The firm’s $3.6 billion second fund that closed in 2008 is now more than 50 percent invested, according to Max.
The firm has not yet laid out plans for when it will come to market with its next vehicle.
“We’re always thinking about it,” Max said, “but it would be premature for us to do anything now.”
The Edgewater Funds, backed by investment bank Lazard, closed its third Growth Capital Partners fund on $714 million in October, beating its reduced target of $650 million. The Chicago-based firm launched the fund in 2008 with an initial target of $750 million, limiting its marketing to existing investors until earlier this year. The firm later lowered its target to $650 million, according to US Securities and Exchange Commission documents.
Edgewater was not available for comment at press time.