CD&R Makes $910M Deal for Wound Care Centers

The owner of David's Bridal and John Deere Landscapes will take over Healogics

New York private equity firm Clayton Dubilier & Rice is buying Healogics Holding Corp. in a deal valued at $910 million.

Jacksonville, Florida-based Healogics operates almost 600 hospital outpatient wound care centers. The company also operates Sechrist Industries, which manufactures hyperbaric oxygen therapy chambers used for wound care. The deal was announced on May 21.

"Healogics is the clear market leader in hospital outpatient wound care services which is a large, underserved market with sustainable long-term growth," says CD&R Partner Kenneth Giuriceo.

CD&R, founded in 1978, has managed about $19 billion in capital. The firm's recent investments include Mauser, a packaging company, and Ashland Inc.'s water technologies unit.

The firm's other investments include David's Bridal, which it bought in October 2012, John Deere Landscapes, which it bought in October 2013, and Hertz.

J.P. Morgan Securities LLC (NYSE: JPM), Credit Suisse (NYSE: CS), Bank of America Merrill Lynch, Citigroup Global Markets Inc. (NYSE: C) and Morgan Stanley (NYSE: MS) have committed debt financing for the deal. Debevoise & Plimpton LLP acted as CD&R's legal adviser, while J.P. Morgan, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citi and Morgan Stanley acted as financial advisers.


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