Varsity Healthcare Partners has agreed to sell a majority equity interest in Probo Medical to Avista Capital Partners.
Probo Medical provides new, used and refurbished ultrasound systems and ultrasound probes. The company’s services include equipment sales, part sales, equipment rentals, depot repair service, equipment installation and de-installation, and field-based repair.
Probo’s operating footprint includes fourteen facilities in the United States and Europe, the majority of which are ISO-certified. The company, led by CEO Michael Asmer, was founded in 2014 and is headquartered north of Indianapolis in Fishers, Indiana.
“On behalf of Probo team members around the world, I am excited for the future of our partnership with Avista Capital,” said Mr. Asmer. “With their strategic and financial support, and a robust pipeline of acquisition opportunities in the United States and Europe, we will continue our impressive growth trajectory while serving the market with the highest-quality diagnostic imaging equipment and services.”
Varsity invested in Probo in October 2018 and actively added on to the platform with buys of Florida-based REMETRONIX (January 2022); Tennessee-based Tenvision (June 2021); Florida-based SonoDepot (April 2021); France-based IMAX Medical (February 2021); UK-based Mount International United Services (January 2021); UK-based Future Medical Equipment and Florida-based Elite Medical Technologies (February 2020); and Pennsylvania-based Trisonics (February 2019).
“We want to thank Michael and the entire Probo team for three years of highly successful collaboration and look forward to continuing our partnership with Probo through a commitment from our third fund,” said David Alpern, a founding partner at Varsity. “We are confident that Probo will continue to thrive with Avista as their partner, and we look forward to supporting them on this next chapter of their growth story.”
Varsity Healthcare Partners invests from $10 million to $60 million in companies that are active in the healthcare services sector and have from $5 million to $15 million of EBITDA. Varsity is currently investing out of its third fund, Varsity Healthcare Partners III LP, which closed in August 2019 with $417 million of capital commitments. The firm, founded by David Alpern and Kenton Rosenberry, has offices in Los Angeles and Stamford.
New York City-based Avista makes control or influential minority investments in growth-oriented healthcare businesses with a specific interest in pharmaceuticals, medical devices, outsourced pharmaceutical services, distribution, and consumer-driven healthcare. In March 2021, the firm held a final, oversubscribed and hard cap close of Avista Capital Partners V LP with total committed capital of $1.2 billion.
“Probo has earned its strong market position through operational excellence and timely, strategic acquisitions,” said Sriram Venkataraman, a partner at Avista. “The company is well-positioned to accelerate growth as favorable sector trends continue, particularly growing demand for newer, high-quality refurbished equipment. We look forward to working with Michael and his team to execute on the numerous growth opportunities ahead.”
Avista was founded in 2005 through a spin-out from DLJ Merchant Banking Partners. Since its founding, the firm has invested more than $8 billion in over 40 healthcare companies.
© 2022 Private Equity Professional | February 17, 2022
