Ohio Shop On Prowl For Health Care Deals

Linsalata Capital Partners is looking for bankers and intermediaries to pitch them deals in health care—a sector in which the firm has yet to invest, according to Eric Bacon, senior managing director, told Buyouts.

The Mayfield Heights, Ohio-based shop began researching the sector about two years ago, drawn by the size of the health care market, which now comprises about 15 percent of the nation’s economy. The firm is particularly interested in medical devices and services, such as disposable medical devices, orthopedic products and products that address getting a good night’s sleep.

The 28-year-old firm has been a generalist investor, taking advantage of opportunities in business services, food service equipment, pet products and services, among many others. The firm typically invests $10 million to $50 million of equity in companies generating EBITDA of between $7 million and $35 million.

Bacon and Vice Presidents Jay Studdard and Tim Healy lead the firm’s effort to find health care opportunities, which now account for about 15 percent of Linsalata Capital’s deal flow. To date the firm has come up empty on the 10 to 12 deals that it’s bid on. The firm is not restricting its search for deals to any particular geography, Bacon said.

Linsalata Capital recently entered the food market after mounting a similar three-year research and outreach effort. The firm bought Hospitality Mints Inc., a Boone, N.C.-based company that makes promotional mints and candies. In that sector, Linsalata Capital is looking for deals in private label (store-brand products) food, niche branded food, and companies that provide food-related services to schools and hospitals.

Founded in 1984, Linsalata Capital has made more than 85 acquisitions via six funds. Its latest vehicle, Linsalata Capital Partners Fund V LP, closed at $425 million in 2005.