One Equity close to two healthcare deals

The JPMorgan private equity arm has submitted an undisclosed offer for Johnson & Johnson’s wound care division just a day after announcing a $110m investment in a CI Capital Partners holding company.

One Equity Partners has agreed to add two healthcare companies to its portfolio in less than a week.

The JPMorgan private equity arm has submitted the winning offer to acquire the Professional Wound Care business from a division of Johnson & Johnson, just a day after announcing a $110 million investment in CI Capital Partners holding company Prodigy Health Group.

Under the terms of the proposed Professional Wound Care deal, One Equity would acquire the brands POMOGRAN Matrix Wound Dressing, TIELLE Hydropolymer Dressing and REGANX Gel, a prescription treatment for lower extremity diabetic ulcers. One Equity would also gain the rights to a research and development facility in Gargrave, England.

One Equity’s offer, selected as a result of a competitive bidding process, still must be approved by ETHICON’s board of directors before the offer expires on 22 August. The Professional Wound Care division currently has 800 employees.

On Monday, One Equity announced that it had acquired Prodigy Health Group for $110 million from CI Capital Partners, formerly Caxton-Isemam. CI Capital will retain a minority stake in the company.

CI Capital created the platform with the 2004 acquisition of Meritain Health, a Buffalo-based third party administrator of health care plans. Prodigy Health’s other core businesses include managed care provider American Health Holding, pharmacy benefit manager Scrip World and medical stop loss insurance firm Niagara Re.  

Dechert advised One Equity on the deal, while Paul, Weiss, Rifkind, Wharton & Garrison and Goldman Sachs advised Prodigy and CI Capital.