Topspin Buys Vet Biz
PE buyers remain attuned to sectors that historically exceed expectations. That would include veterinary medical technology companies.
June 10, 2009
As private equity firms seek transactions that will provide unordinary returns in an economy that is expected to slowly rebound, Topspin Partners LBO, headquartered in Roslyn Heights, New York has partnered with Integris, LLC, an independent sponsor based in La Jolla, California, to purchase a veterinary medical technology company. The PE firm has acquired Alpharetta, Georgia-based Sanuwave, Inc.’s veterinary business.
In speaking with MergersUnleashed, Leigh Randall, managing director of Topspin LBO, said the demographics of the veterinary industry “are quite good.” Although the industry is “not recession-proof,” he added that it “may be more recession resistant than other sectors.” The long-term trend that he has noticed is that households have spent increasing amounts on their pets over the past 15 years, disproportionate to GDP growth.
The veterinary portfolio company will be renamed Pulse Veterinary Technologies and will remain in Alpharetta. Eric Goorno, formerly a head of Boston Scientific’s urology unit, will serve as chief executive, while Richard Effress, Integris’ founder is chairman of the new company.
The acquisition follows an already-long history of private equity’s interest in the veterinary sector. In September 2000, Leonard Green & Partners LP bought Veterinary Centers of America, which has since changed its name to VCA Antech. The Los Angeles, California firm also acquired Phoenix Scientific Inc., an animal pharmaceutical company in October 2002. Later, in March 2005, Montagu Private Equity bought LEO Animal Health, and renamed the animal pharmaceutical company VetXX. In April 2007, Summit Partners purchased National Veterinary Associates from Willis Stein & Partners. A month later, New York-based Bruckman, Rosser, Sherril & Co. acquired MWI Veterinary Supply, Inc., an animal health products distributor.
The company manufactures a product that delivers a series of electrical shocks that are used to treat soft tissue damage. The shocks are “deeper and more focused” than ultrasound, Randall said. The product is used primarily in the equine market, and Topspin LBO hopes to reach the international equine market and plans to expand to meet the needs of the small animal market, particularly the dog market.
Before launching Integris, Effress was chief executive and chairman of MedSource Technologies, Inc., a service provider for medical device companies.
Topspin LBO was founded in August 2000 by Leo Guthart and Jim Simons. In addition to its main office in Long Island, the firm has a satellite location in Larchmont, New York. The firm manages about $132 million in assets.
Calls placed to Integris were not returned by press time. Topspin LBO was unable to be immediately reached for comment.
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