KKR makes clinical play with Apax portfolio firm spin-out; Ambienta SGR platform company packages deal

Clinisupplies manufacturers and distributes continence care products, such as urinary collecting devices and catheters.

Good morning Eurohubsters, Craig McGlashan here with the Dealflow.

We’ve got a couple of deals to report this morning, one in healthcare and the other in packaging, while we also have some people moves to fill you in on.

Spin-out. KKR has agreed to acquire Clinisupplies, a Watford, UK-headquartered continence care product provider. The seller is Healthium MedTech Private, an Indian medical devices and consumable products manufacturer, which in turn has private equity backing from Apax Partners.

The Clinisupplies management team will retain a minority position. Further financial details were not disclosed.

Clinisupplies manufacturers and distributes continence care products, such as urinary collecting devices and catheters. It supplies hospitals and pharmacies, as well as providing for patients directly via its home delivery services. It has over 400 employees in the UK, China and India.

The firm plans to use KKR’s “global network and market knowledge” to expand into new products and geographies, according to a statement from Clinisupplies CEO Paul Cook.

“Clinisupplies has an industry leading track record as a fully integrated provider of continence care solutions to clinics and patients across the UK,” said Claus Bjerre, KKR senior adviser, in a statement. “Its business model covers the entire value chain, from R&D and manufacturing to direct-to-patient sales and distribution, allowing the group to continuously understand and address the evolving needs of patients, clinicians, and caregivers alike.”

KKR is a New York-headquartered investment company that had completed private equity transactions with around $693 billion of total enterprise value as of 30 September. It invested in Clinisupplies through its Health Care Strategic Growth Fund II, a $4 billion fund focusing on high-growth healthcare firms.

Healthium is headquartered in Bengaluru, India. It acquired Clinisupplies in its 2016 financial year. Apax, a London-headquartered private equity firm, invested in Healthium in 2018.

We’ll look to bring you more on this deal, from the buyer and seller perspective, in the coming days.

The number of different firms involved reminded me of a deal involving – deep breath – Cinven, Ontario Teachers’ Pension Plan Board, Triton, group.One and dogado Group yesterday. Check out our coverage of that deal here.

In the pouch. In.Pack Machinery, a platform company of Ambienta SGR, acquired Karlville Swiss, a manufacturer of machines for pre-made pouches, the firms announced this morning.

Balerna, Switzerland-headquartered Karlville Swiss was founded in 2018. Around 50 percent of sales are booked in North America, with the rest in Europe, Latin America and Asia.

The firm makes pouches, which it says are a substitute for rigid containers used in the food, pet food, personal care and homecare industries, and allow for up to 80 percent reduction in plastic use.

“This acquisition allows the platform to further enlarge its offering to another product category whose growth is driven by environmental trends, and to further expand its reach particularly in the US,” said Francesco Lodrini, partner at Ambienta, in a statement. “This is the 12th add-on completed by Ambienta in the last 12 months, further confirming our capability to carry out international buy and build strategies”.

Milan-headquartered In.Pack is a manufacturer of packaging machinery with a sustainability focus.

Ambienta SGR is also headquartered in Milan with offices in Munich, London and Paris. It is an investment management firm with a private equity strategy targeting “niche European SMEs driven by environmental themes”.

Packaging is one area we know that private equity firms have taken a big interest in. Earlier this year, we wrote about BC Partners and Bain Capital taking joint ownership of Italian luxury packaging company Fedrigoni. Check out the BC Partners’ side of the story here and the view from Bain Capital here.

People move. Capital Dynamics appointed Andrea Mazzaferro as head of primaries, Europe. Mazzaferro is taking over from Mark Drugan, who is retiring after 34 years at Capital Dynamics.

As head of primaries in Europe, Mazzaferro will lead European investments in mid-market funds within the buyout, specialist, turnaround and growth sectors. He will work alongside fellow regional heads of the firm’s primaries strategy: Helen Lais for the US and Manjia Guan for Asia.

Before joining Capital Dynamics in 2018, Mazzaferro was the chief investment officer at Advanced Capital SGR in Milan. At Capital Dynamics, he has served as a senior director and as a managing director.

Read more on that here.

Appointment. Sticking with people moves, private equity firm Permira has appointed Andy Eckert as senior adviser to its global technology team, focusing on healthcare technology investments.

Eckert was most recently CEO of Zelis, a payments technology and cost containment platform, and has over 30 years of experience in the healthcare industry.

Permira will task Eckert with supporting its investment activity in healthcare technology and value creation across its portfolio companies. Permira has deployed more than €17.5 billion in the technology sector and over €4.2 billion in healthcare.

That’s it from me – we’ll speak again tomorrow.