Missing in Auction: Healthcare sale processes that went quiet [UPDATE]

18th April 2024 02:11 PM

By Edward Giobbe and Gigi Perzigian

Missing in Auction (MIA) identifies M&A sale processes reported to be underway that have not resulted in an announcement or update.

The following edition of MIA identifies North American companies that attempted a sale process in 3Q23 that have not traded year-to-date.

The full report across all sectors is available for download.

NEW ADDITIONS

Company/Asset for Sale	Owner	Advisor	Size	Last Reported Intel
Argon Medical Devices	Shandong Weigao Group Medical Polymer (Weigao) [HKG:1066]	UBS	N/A	23 August 2023 – BLOOMBERG reports a sale could value Argon Medical Devices at more than USD 1bn and the company is expected to attract PE interest. MERGERMARKET first reported sale and advisory mandate in June 2023. That report noted that Weigao hopes to fetch a valuation twice what it paid in 2017, when Weigao acquired Argon for USD 850m through a joint venture. Weigao owns 90% of the JV while its partner, an undisclosed private equity firm, holds the remaining 10%.
Danville Services	Aries Capital Partners	William Blair	USD 7m – USD 8m EBITDA; USD 60m revenue	18 September 2023 – MERGERMARKET first to report sale and advisory mandate. Management presentations were held the week prior to the report. The report notes that Aries Capital owns the majority of the company.
Hero Practice Services	Silver Oak Services Partners	Houlihan Lokey	USD 20m – USD 25m EBITDA	27 September 2023 – MERGERMARKET first to report sale and advisory mandate. Hero Practice Services operates 35 dental and 25 vision offices throughout the US. On its website, the company states it was acquired by Silver Oak Services Partners in February 2015. NOTE: In December 2023, Ronald Jarvis joined the company as CFO, according to his Linkedin profile.
OrthoAlliance	Revelstoke Capital Partners	Houlihan Lokey	USD 60m adjusted EBITDA	15 August 2023 – MERGERMARKET first to report sale and advisory mandate. The process is at an advanced stage and is down to several PE bidders, including IDENTIFIED BIDDER Clayton, Dubilier & Rice. NOTE: In September 2023, Taylor Eidem was appointed as chief growth officer, according to his LinkedIn profile. He was previously Vice President, Mergers & Acquisitions.
Platinum Dental Services	Closely Held	TripleTree	USD 7m EBITDA; USD 38m projected revenue	29 August 2023 – MERGERMARKET first to report recapitalization and advisory mandate. Platinum Dental is owned by CEO Vince Dilley, who founded the company in 2012. NOTE: In December, director of doctor relations and culture Craig Villarreal was named M&A associate, according to his LinkedIn profile.
Rotech Healthcare	Capital Group, Silver Point Capital, Venor Capital Management	Jefferies	USD 220m EBITDA	31 August 2023 – REUTERS first to report sale and advisory mandate. A sale could value the company at more than USD 1.5bn. NOTE: In January 2024, Rotech announced that Tim Pigg transitioned from CEO to Executive Chairman of the Board, and COO Robin Menchen was appointed CEO.
The Skin Center	RF Investment Partners	Houlihan Lokey	USD 14m to USD 17m EBITDA	07 August 2023 – MERGERMARKET first to report sale and advisory mandate. The report notes that the medspa market is heating up and financial sponsors are eager to invest in the space.
US Orthopaedic Partners	FFL Partners, Thurston Group	Harris Williams	USD 60m EBITDA	15 August 2023 – MERGERMARKET reports first-round bids are due that month. The report notes that the company operates a network of more than 270 orthopedic providers in the southeastern US. THE DEAL first reported sale exploration on 11 August. NOTE: In January 2024, the company announced that Stephen Holtzclaw was appointed CEO.