Private equity firm EQT, through its EQT Mid Market US fund, has acquired a majority stake in Clinical Innovations, a provider of single-use medical devices used in the labor and delivery (L&D) departments within hospitals.
Clinical Innovations is the largest medical device company exclusively focused on L&D. The company’s products include the Kiwi Vacuum-Assisted Delivery System and Koala Intrauterine Pressure Catheter. The company has also recently expanded its product portfolio in the neonatal intensive care segment. Clinical Innovations’ manufacturing facility in Utah is ISO certified and the company has approximately 165 full-time employees and serves more than 80 countries globally. The company was founded in 1993 and is headquartered in Salt Lake City (www.clinicalinnovations.com).
Clinical Innovations was sold to EQT by The Pritzker Group which acquired the company in December 2010 from RoundTable Healthcare Partners. In August 2017, Clinical Innovations completed the add-on acquisition of Germany-based Brenner Medical, a provider of obstetrics and gynecology products. The Brenner Medical acquisition was the continuation of a European expansion strategy launch by Clinical Innovations in 2014.
“We look forward to supporting Clinical Innovations’ CEO Ken Reali and his team through their next phase of growth,” said Brendan Scollans, Partner at EQT Partners. “The company’s portfolio of innovative and high-growth new products, combined with an impressive global sales organization, has enabled it to become a market leader within L&D. EQT’s healthcare expertise and global presence will help the company continue accelerating its international expansion and the broadening of its best-in-class L&D and NICU product set through acquisitions.”
EQT invests in medium-sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. EQT’s first US-dedicated fund, EQT Mid Market US, held a final closing in October 2016 with commitments of $726 million. The new fund makes both control and co-control investments of $35 million to $140 million. Sectors of interest include industrials; consumer goods & retail; services; technology, media and telecom; energy; environment; and healthcare. The Mid Market US investment advisory team – based in New York – is made up of 10 professionals, and is led by partners Matthew Levine and Brendan Scollans.
“We are eager to partner with EQT as we continue to develop our L&D and NICU strategy that we have executed over the past several years,” said Ken Reali, President and CEO of Clinical Innovations. “EQT is an ideal fit for Clinical Innovations and our continuing growth. EQT’s relationships, global presence and philosophy fit well with the company culture and our strong commitment to delivering excellent products to clinicians to care for mothers and their babies.”
Pritzker Group, founded by Managing Partner Tony Pritzker and J.B. Pritzker, has three principal investment teams: Private Capital, which acquires and operates North America-based middle-market companies in the manufactured products, services and healthcare sectors; Venture Capital, which provides early-stage and growth venture funding to technology companies; and Asset Management, which partners with investment managers across global public markets. The Pritzker Group is based in Chicago (www.pritzkergroup.com).
Moelis & Company and Cain Brothers served as financial advisors to Clinical Innovations.
© 2017 Private Equity Professional | October 20, 2017
