Earlier this year, John Eppler, principal at Lee Equity Partners, told PE Hub that private equity investment in cardiology is “in its infancy,” but that the sector is fragmented and ripe for consolidation.
“Cardiology is in the early innings of private equity investment with a limited number of platforms created to date,” said Eppler. “Cardiology is a large market driven by a massive cardiovascular disease burden in the US. Approximately one in four deaths are related to cardiovascular disease, and there is opportunity to invest to improve that going forward.”
Several procedures and services once restricted to hospitals are now performed at outpatient clinics at lower costs and with strong patient outcomes. This has created opportunities for consolidating practices as well as in cardiac device manufacturing. Here are five of those deals that PE Hub rounded up from over the past year, in reverse chronological order:
1. Montagu-backed RTI Surgical to buy Collagen Solutions
RTI Surgical, a contract development and management organization focused on regenerative medicine, announced in October its acquisition of Collagen Solutions, which is based in Eden Prairie, Minneapolis, and produces engineered medical-grade collagen and xenograft tissue for cardiac applications.
RTI is headquartered in Alachua, Florida, and was acquired in 2020 by Montagu Private Equity, a PE firm based in London.
2. IK Partners invests in AED distributor Defibrion
In July, IK Partners announced its agreement to acquire a stake in Defibrion, a distributor of automated external defibrillators (AEDs), from existing shareholders, including Holland Capital, co-founder and CEO Joshua Valkenier and the management team.
Based in Groningen, the Netherlands, Defibrion supplies AEDs globally. “This market [AEDs] is predicted to continue growing across Europe at an impressive rate year-on-year, largely due to increased awareness of the need for these products, given the rising risk of cardiac arrest,” said Frances Houweling, partner at IK and advisor to IK SC III Fund, in a statement.
3. WindRose Health Investors acquires CardioOne
WindRose Health Investors, a PE firm based in New York, announced in March that it completed its acquisition of CardioOne, a provider of workflow and management technologies for independent cardiology practices.
CardioOne is also based in New York and launched in 2023. WindRose partnered with the company’s executive team to provide up to $100 million of capital to support its growth.
“CardioOne’s unique, physician-aligned model meets the market where it is and positions the company to take advantage of the growing desire among cardiologists to maintain their independence,” said Oliver Moses, managing partner with WindRose, in a statement.
4. Abris-backed ScanMed makes third add-on with Centrum Rehabilitacji
In January 2024, Abris Capital Partners announced its portfolio company ScanMed’s acquisition of Centrum Rehabilitacji, a Polish rehabilitation provider based in Chorzów.
Based in Warsaw, ScanMed is a private healthcare provider and pursued the deal as part of its strategy for creating quality standards of cardiology care in Poland, under co-ordinated specialized care. Abris Capital, also based in Warsaw, acquired it in 2020. It previously acquired Med-Lux in 2023 and ARS Medical in 2022.
Centrum Rehabilitacji provides manual therapy, physical therapy and rehabilitation programs, including a modern and comprehensive cardiac care program.
5. Pharos Capital acquires medical device company RhythMedix
Another January 2024 deal was by Pharos Capital Group, which announced its acquisition of RhythMedix, a maker of cardiac monitoring systems based in Mount Laurel, New Jersey. RhythMedix’s management team said it would reinvest in the company.
“We are impressed with RhythMedix’s continued focus on driving innovation in the cardiac monitoring market, as evidenced by the RhythmStar platform’s ability to give providers near real-time notifications, which allow for life-changing interventions for patients suffering from an event, while also lowering the cost of care by reducing unnecessary hospital admissions for patients who show no abnormalities,” said Joel Goldberg, a partner at Pharos, in a statement.
