H2 Equity sells Healthcare 21 to trade

Harriet Matthews
13 April 2021

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H2 Equity Partners has sold life sciences products distributor Healthcare 21 (HC21) to Sweden-based listed life sciences business AddLife for a purchase price of тЌ240m.

An additional €5m may also become payable by 2024, subject to HC21's financial results up to 2023, AddLife said in a statement. Cash will fund 74% of the acquisition, while 26% is being funded using newly issued class-B shares.

The acquisition will allow AddLife to expand to Ireland and add to its portfolio of proprietary brands and its customer base, the company said in the same statement.

HC21's current management team will continue to lead the business following the acquisition, with the company operating as a separate sub-group in AddLife's medical technology division.

Unquote sister publication Mergermarket reported in January 2021 that HC21 was up for sale, with William Blair mandated to run the process. The report said the company generates EBITDA of around €20m.

H2 Equity invested in HC21 in August 2018 and announced at the time that it intended to merge the business with portfolio company Aquilant, which it acquired in a carve-out. The GP invested via H2 Equity Partners Fund V, which held a final close in March 2016 on its £200m hard-cap. At the time, HC21 generated revenues of €75m.

HC21 acquired Xograph in 2019 and Cardio Solutions in 2020. H2 Equity said in a statement that it had also supported the company with growth in revenues and profitability.

Company
Founded in 2003 and headquartered in Cork, Healthcare 21 distributes medical and life sciences products in 15 therapeutic segments. It also offers services including decontamination and asset management for its customers.

The company generated revenues of €171m in the 2020 financial year. It employs 450 staff. Half of its sales are composed of products for the emergency care, primary and home healthcare, diagnostics, and surgery, according to a statement.

People
AddLife – Kristina Willgård (CEO).
Healthcare 21 – Tara Kearney (CEO).

Advisers
Vendor – William Blair (corporate finance); Eversheds Sutherland (legal); KPMG (financial due diligence, tax); Roland Berger (commercial due diligence).