Beaver-Visitec International

TPG Capital is adding to its $8 billion-plus health care portfolio by acquiring Beaver-Visitec International, maker of eye surgery devices, from RoundTable Healthcare Partners. The deal is expected to close in the third quarter; terms of the transaction were not disclosed.

Beaver-Visitec International—also known as BVI—develops, makes and markets specialized surgical devices for ophthalmologists. BVI was created in 2010 when RoundTable combined three ophthalmic product businesses from Becton Dickinson, Medtronic, and Aspen Surgical. BVI is based in Waltham, Massachusetts, with manufacturing plants in Waltham and Bidford on Avon, U.K. Its products include blades, cannulae, ophthalmic fluid management products and electrosurgery devices.

Since 2007, TPG Capital has invested more than $8 billion in health care sector companies, including IMS, Quintiles and EnvisionRX in pharmaceutical services; blood transfusion therapy and diagnostics manufacturers Fenwal and Immucor; orthopedic device company Biomet; health care providers Surgical Care Affiliates, IASIS, Parkway, Chindex and Manipal Hospitals; and pharmaceutical manufacturers Adare, Aptalis and Par Pharmaceutical. TPG Capital, based in Fort Worth, Texas, is the private equity fund of alternative investment behemoth TPG, which has $70 billion under management.

RoundTable Healthcare Partners, based in Lake Forest, Illinois, is a health care focused private equity firm with $2.75 billion in committed investor capital, including $2.15 billion in four equity funds and $600 million in two subordinated-debt funds.

Acquisitions of medical device companies have been a hot area for middle-market dealmakers recently, and the M&A trend has been driven partly by device makers seeking mergers to gain access to new technology as hospitals push for lower prices. Medtronic plc (NYSE: MDT) said it will buy HeartWare International Inc. (Nasdaq: HTWR) and its technology for treating heart failure. Apax Partners, the private equity firm, is forming a company from its majority stake in the respiratory business of Becton, Dickinson and Co. (NYSE: BDX). Zimmer Biomet Holdings Inc. (NYSE: ZBH) is buying LDR Holding Corp. (NYSE: ZBH) and its surgical technologies to treat spine disorders. TE Connectivity Ltd. (NYSE: TEL) purchased Creganna Medical, a health-care device company, from buyout firm Permira Advisers. Stryker Corp. (NYSE: SYK) was particularly busy in medical devices M&A. It acquired the Y-Wire and Tiger Jamshidi Needle products from SafeWire to expand its spine division. It bought the medical devices portfolio company of Bain Capital Private Equity, Physio-Control International Inc., which makes monitors, defibrillators and CPR-assist devices. Stryker also bought the neurosurgery tools portfolio of Synergetics USA Inc. (Nasdaq: SURG) and it bought Sage Products LLC, maker of surgical items, from the Madison Dearborn Partners PE firm.

For the BVI deal, Deutsche Bank Securities Inc., Guggenheim Securities LLC, RBC Capital Markets and UBS Investment Bank served as TPG’s financial advisers. UBS, Deutsche Bank Securities, Antares Holdings and RBC Capital Markets provided financing for the transaction, while Ropes & Gray LLP was TPG’s legal counsel. For BVI, William Blair & Company LLC was the financial adviser, and for RoundTable, Sidley Austin LLP was the legal adviser on the deal.

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