Audax Private Equity To Buy Hillrom’s Surgical Consumable Products For £136M

Under the deal, Audax will acquire Aspen Surgical, which manufactures branded and private label single-use surgical products such as scalpels, blades, wound care, fluid control, and other patient safety surgical products.

Founded in 1999, Aspen Surgical is headquartered in Caledonia of Michigan and operates two facilities with around 500 employees. The facilities are located in Caledonia and Las Piedras of Puerto Rico

Audax Group managing director Young Lee said: “We have acquired a set of products and brands that we believe are best in breed and standard of care. The Company has historically grown both organically and through acquisitions, and we are thrilled to join them as we continue to build on past successes.”

Hillrom’s surgical consumable products comprise of Bard-Parker conventional and safety scalpels and blades, in addition to a variety of other operating room accessories.

The divested products are believed to generate annual revenue of around $100m (£80.1m) on a pro forma basis for fiscal 2019.

Subject to customary closing conditions, the deal is expected to be completed in Hillrom’s fiscal fourth quarter of this year.

Kirkland & Ellis served as legal counsel to Audax, while Goldman Sachs & Co acted as exclusive financial advisor to Hillrom on the transaction and Jones Day served as legal advisor.

Hillrom president and CEO John Groetelaars said: “We are grateful to our teams in Caledonia, Michigan, Las Piedras, Puerto Rico, and in the field for their dedication to our customers and to the company, and we are confident they will thrive under Audax ownership.”

In March this year, Hillrom also agreed to acquire US-based mobile healthcare communications firm Voalte for $180m (£144m) in cash.

Based in Sarasota of Florida, Voalte provides mobile communication platform, which enables care teams inside and outside the hospital to securely access and exchange information.

With over 10,000 employees, Hill-Rom serves its customers in five core areas such as advancing mobility, wound care and prevention, patient monitoring and diagnostics, surgical safety and efficiency and respiratory health. – NS Medical Devices