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DW Healthcare, Linden Capital Team to Pick Up HydraFacial Maker

Johnson & Johnson, Tecomet, Teleflex, TPG, Windjammer and Zimmer Biomet have all acquired medical device businesses

DW Healthcare Partners and Linden Capital Partners have agreed to buy Edge Systems, a maker of medical devices used for skin treatments. Terms of the deal were undisclosed.

Edge manufactures health systems for skin treatments that do not require the equipment to be inserted into the body. The target’s most recognized product is the HydraFacial, a line of skin rejuvenation devices that provide a multistep treatment. Edge has also introduced an in-office service for doctors called Perk, an exfoliation service that includes take-home products for clients to apply daily. The target has provided more than 7,000 systems to dermatologists, plastic surgeons and medical spas across 75 countries.

Linden and DW Healthcare are two middle market private equity firms that focus primarily on the healthcare industry. Chicago-based Linden manages approximately $1.3 billion in assets, while Park City, Utah-based DW Healthcare has made more than 25 investments in healthcare companies and has more than $730 million in committed capital. Linden has invested more than $1 billion in healthcare and life science companies since its inception, including its recent purchase of Merical Inc., a maker and packager of dietary supplements. 

“The world of medical device M&A has been quite active over the last 12 to 18 months,” says one dealmaker Michael Probst, the director of corporate development at Teleflex Inc. (NYSE: TFX), in this video interview at ACG Philadelphia’s M&A East conference. “The level of consolidation in the space has been tremendous, much of that has been driven by the clinical need of customers.”

Medical device companies continue to receive strong buyer interest. Recent deals include: Teleflex’s agreement to buy Vascular Solutions Inc. (Nasdaq: VASC) for $1 billion; Windjammer Capital Investors  backing medical test equipment maker Advanced Instruments; Genstar-backed Tecomet Inc. purchased Mountainside Medical, a maker of endoscopes and laparoscopes; Johnson & Johnson (NYSE: JNJ) agreed to buy Abbott Laboratories’ (NYSE: ABT) eye-surgery equipment unit; TPG Capital acquired Beaver-Visitec International, another eye surgery device maker; and  Zimmer Biomet Holdings Inc. (NYSE: ZBH) agreed to purchase spinal surgery device producer LDR Holding Corp. (NYSE: ZBH).

 

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