Target: Facet Technologies
Sponsor: Water Street Capital Partners
Seller: Matria Healthcare Inc.
Purchase Price: $122M
Industry Sector: Healthcare
Diabetes is spreading fast in the United States. Incidence of the disease, which affects insulin production and the breaking down of glucose in the body, has doubled since 1980, and today, nearly 21 million Americans are believed to have diabetes.
Indeed, those numbers have not gone unnoticed, especially by investors that focus on health care. Last year
The most recent PE play in the sector was made by healthcare-focused
Facet’s products are used by people who must routinely monitor their blood glucose levels as a key element of managing their diabetes condition. The Marietta, Ga.-based company is best known as a provider of lancets and lance-related devices. It has manufacturing plants in Marietta and McDonough, Ga., and Northampton, England.
Water Street was particularly attracted by Facet’s engineering and product development capabilities, which “could be built on for future platform growth,” according to Water Street Managing Partner Tim Dugan. Those attributes also position the company to “grow in related markets that could benefit from Facet’s ability to design, develop and manufacture specialty sharp components and related devices requiring extreme precision and accuracy,” Dugan said.
The sale of Facet to Water Street stems from Matria’s announcement in January that it planned to divest two of its diabetes-related businesses, Facet and Dia Real GmbH, the company’s overseas diabetes operation. (Dia Real, which provides diabetes disease management services and supplies in Germany, is still without a buyer.)
Tim Dugan launched Water Street shortly after he left the healthcare team of
According to SEC Form D filings, the firm has started the fundraising process for its inaugural fund, Water Street Capital Partners LP, and is looking to raise $300 million. Credit Suisse has been brought on as the placement agent for the fund. —A.N.