Novo Holdings has agreed to acquire Pritzker Private Capital’s KabaFusion, a home infusion company specializing in intravenous immunoglobulin (IVIG). The home infusion market is highly fragmented, presenting an opportunity to create another large, diversified platform consolidator more akin to the big two: OptumRx and Option Care Health.
According to Axios, the deal’s exact price tag couldn’t be confirmed, but a $1 billion-plus valuation is implied. They credit sources previously cited marketed 2022 EBITDA of $57 million, or close to $75 million in pro forma 2022 EBITDA, and two sources say the deal commanded a multiple around the 19x-20x vicinity.
KabaFusion is licensed to serve patients in 44 states and recently nearly doubled its specialty pharmacy footprint across 25 states via the acquisition of assets from Coram.
Pritzker bought KabaFusion in 2019 in a deal valued at approximately $250 million, a mid-teens multiple, according to sources at Axios. It followed with the 2020 purchase of Lincare’s line of infusion pharmacies, adding about $100 million to the top line.
Novo, with roots in Denmark, is quickly making a name for itself in U.S. health care and life sciences investing through its Principal Investments arm – KabaFusion would be its third such mark.
According to Grandview Research, the IVIG market is growing, and other PE-backed infusion therapy providers offer this therapy including H.I.G. Capital’s Soleo Health, Linden Capital’s Vital Care, and Waud Capital Partners’ PromptCare.
According to Axios, the issue of drug concentration is top of mind for investors, which is why they suspect Novo is not only a believer in IVIG’s underlying trends but has a bigger, broader vision around home infusion.
The M&A market for healthcare companies continues to strengthen in 2022 with strategic corporate buyers and private equity investors. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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