Linden picks up divested healthcare company

The First Chicago Equity Capital spin-out has acquired the MedSystems business of Ohio-based Cardinal Health. Cardinal last year sold a unit to The Blackstone Group for $3.3bn.

Linden, a Chicago-based buyout firm focused on healthcare-related investments, has acquired healthcare products company MedSystems from Cardinal Health.

Dublin, Ohio-based Cardinal sold MedSystems for an undisclosed sum as it does not fit into the company’s core focus, Cardinal’s clinical and medical products chief executive Dave Schlotterbeck said in a statement. Cardinal acquired MedSystems in 2007 during its purchase of medical device company, Viasys.

MedSystems, which produces direct feeding devices and surgical protection products, has now been renamed Corpak MedSystems.

Cardinal previously divested itself of another healthcare unit, Pharmaceutical Technologies and Services, a contract pharmaceutical manufacturer and services provider, last year to The Blackstone Group for $3.3 billion.

Linden, formed in 2002 after managing partner Eric Larson left First Chicago Equity Capital (formerly One Equity Partners), also employs Anthony Kesman, Cardinal’s former president of the care continuum products and services group. Kesman joined Linden as operating partner in January 2007.

Linden targets deals requiring less that $50 million (€34 million) in equity through its $200 million debut fund, which closed in 2006. Linden has an alliance with private equity firm Madison Dearborn Partners to pursue larger deals.

Linden is currently raising its second fund with an undisclosed target, according to the Probitas Partners 2008 Private Equity Deskbook.