Buyer: DW Healthcare
Seller: SoClean Inc.
Sector: Medical Device
DW Healthcare is closing out 2017 with its second deal of the month by acquiring SoClean Inc., a manufacturer of medical machines used to clean masks for patients with breathing and sleep disorders. The current deal follows DW Healthcare’s purchase of Edge Systems, a skin treatment device maker, announced in early December.
SoClean, based in Oxford, Massachusetts, distributes fully automated cleaning devices for Continuous Positive Airway Pressure (CPAP) machines. CPAPs are used to help improve health problems for everyday people suffering from sleep apnea and other sleeping disorders. The target’s devices sanitize the CPAP mask, hose and reservoir without having to disassemble, introduce water or other chemicals into the process. Improperly cleaned CPAP equipment, according to SoClean, is filled with harmful bacteria and germs that could make people sick when introduced to the body.
Financial terms of the transaction were not disclosed; however White Oak Healthcare Finance LLC is acting as lead arranger and administrative agent on the funding of a $60 million senior credit facility to finance the SoClean deal.
DW Healthcare is a healthcare-focused private equity firm based in Park City, Utah. The middle-market firm has completed more than 25 investments in healthcare companies and has more than $730 million in committed capital.
Medical device companies continue to receive strong buyer interest. Recent deals include: Teleflex’s agreement to buy Vascular Solutions Inc. (Nasdaq: VASC) for $1 billion; Windjammer Capital Investors backing medical test equipment maker Advanced Instruments; Genstar-backed Tecomet Inc. purchased Mountainside Medical, a maker of endoscopes and laparoscopes; Johnson & Johnson (NYSE: JNJ) agreed to buy Abbott Laboratories’ (NYSE: ABT) eye-surgery equipment unit; TPG Capital acquired Beaver-Visitec International, another eye surgery device maker; and Zimmer Biomet Holdings Inc. (NYSE: ZBH) agreed to purchase spinal surgery device producer LDR Holding Corp. (NYSE: ZBH).