Cinven buys National Seating & Mobility in ~$850 mln transaction

Marking its third U.S.-based healthcare investment, Cinven Partners has snapped up National Seating & Mobility for a total enterprise value of approximately $850 million, according to people familiar with the matter.

The seller is Court Square Capital, which kicked off a Harris Williams-run auction in mid-August. Buyouts initially reported on the sponsor-focused sales process in early September.

Nashville, Tennessee’s NSM, a supplier of specialized wheelchairs and other mobility products, produces approximately $75 million in pro forma adjusted Ebitda, one of the people said. That implies an Ebitda multiple just north of 11x.

Founded in 1992 and led by CEO Bill Mixon, NSM is one of the country’s largest providers of complex rehab technology, or CRT.

NSM is largely known for its customized power and manual wheelchairs and related accessories; however, it also designs an array of additional products to help improve daily living and mobility. Other equipment supplied includes beds, bath equipment, communication devices and lift chairs.

The company is a direct competitor of NumotionAEA Investors acquired a majority stake in Numotion about a year ago from existing investors Audax Group and LLR Partners.

Court Square acquired NSM from Wellspring Capital Management in August 2016. Terms weren’t disclosed, but sources at the time said the deal was valued a little south of $400 million.

Cinven, a European private equity firm, focuses its U.S.-based efforts exclusively across the healthcare and technology industries.

Cinven also owns Bioclinica, which provides tech-enabled services to contract research organizations and pharmaceutical companies.

The firm in August 2018 sold its remaining stake in Medpace, a pharmaceutical contract-research organization, generating a 3.5x return, Buyouts reported. The company debuted on the Nasdaq in August 2016, raising $161 million.

Cinven in June made a significant investment in Jaggaer, a provider of procurement software for large- and medium-size businesses.

Jefferies and Cain Brothers, a division of KeyBanc Capital Markets, advised Cinven on the transaction.

Cinven, NSM and Court Square declined to comment.

Action Item: Check out Cinven’s latest Form ADV: https://bit.ly/2Oliqw6