Pritzker-backed PPC acquires KabaFusion, its second healthcare investment

  • Why this is important: PPC is actively acquiring entrepreneur-run mid-market companies



Pritzker family-backed Pritzker Private Capital added KabaFusion, a provider of acute and specialty home infusion services, to its fast expanding list of acquisitions.

PPC’s portfolio includes another healthcare company PathGroup, focused on pathology services.

“We like ‘higher efficiency, higher efficacy’ healthcare businesses,” said Michael Dal Bello, investment partner.

PPC, which acquires middle-market companies for Pritzker Group Private Capital, was spun off in early 2018 to create a committed pool structure with like-minded family offices, Paul Carbone told Buyouts in an earlier interview.

PPC acquired C.H. Guenther & Son, Plaskolite and several add-on acquisitions in 2018. PPC’s companies include Entact, Entertainment Cruises, LBP, Peco Pallet and PLZ Aeroscience Corporation.

Cerritos, California-based KabaFusion, founded and owned by Sohail Masood, delivers intravenous immunoglobulin(IVIG) and other home-infusion intravenous therapies, through pharmacist-owned specialty pharmacies. It currently serves more than 40 U.S. states through seven such pharmacies.

Home infusions that provide very sick patients with at-home care was an area of interest for Dal Bello, who previously worked at Blackstone Group and helped lead sourcing in healthcare and insurance there.

Patients like home infusions because they don’t have to travel to a facility, doctors like the service because of the high level of care and data that flows back to them and payors like the service because it reduces overall cost, Dal Bello said.

KabaFusion’s management team includes Dr. Masood, Sohail Merchant, and Mike Rigas, who will continue to manage the business, he said.

PPC’s plans for KabaFusion include deepening presence in existing markets and widening its geographical footprint, he said. “We will also expand into therapy areas that require a high level of clinical care,” Dal Bello said.

Expansion would be a mix of organic growth and opportunistic add-ons, he said.

Terms of the sale were not disclosed. The deal comes more than four years after BBH Capital, the private equity arm of Brown Brothers Harriman & Co, recapitalized KabaFusion.

PPC  focuses on manufactured products, services and healthcare companies with enterprise value of between $100 million and $1 billion, and Ebitda in excess of $15 million.

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