Daily News: May 22, 2014

J.P. Morgan, Others Finance Healogics Acquisition

Clayton, Dubilier & Rice announced an agreement under which CD&R-managed funds will acquire Healogics Holding, an advanced wound care services, from Metalmark Capital and Scale Venture Partners. The transaction is valued at $910 million. Additional terms were not disclosed.

J.P. Morgan Securities, Credit Suisse, BofA Merrill Lynch, Citigroup Global Markets and Morgan Stanley have committed to providing debt financing for the transaction. Debevoise & Plimpton acted as legal advisor and J.P. Morgan, Credit Suisse Securities (USA), BofA Merrill Lynch, Citi and Morgan Stanley acted as financial advisors to CD&R.

Jacksonville, FL-based Healogics operates nearly 600 hospital outpatient Wound Care Centers. In addition, the company operates Sechrist Industries, the leading global manufacturer of hyperbaric oxygen therapy chambers (HBOTCs) used in advanced wound care

“Healogics is the clear market leader in hospital outpatient wound care services which is a large, underserved market with sustainable long-term growth,” said Kenneth A. Giuriceo, CD&R partner. “We look forward to partnering with the company’s talented management team to continue to serve the increasing trend towards hospital outsourcing and the growing wound care population.”

The transaction is expected to close in the second or third quarter of 2014.

Clayton, Dubilier & Rice is a private equity firm with an investment strategy predicated on producing financial returns through building stronger, more profitable businesses.