Permira seals first healthcare deal in a decade

LONDON Wed Oct 6, 2010 12:12pm EDT

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LONDON Oct 6 (Reuters) - Private equity firm Permira [PERM.UL] is to buy Irish medical device maker Creganna-Tactx Medical, its first deal in the healthcare industry in a decade.

Permira said on Wednesday it will take a majority stake in Creganna from current majority owners the Quinn family and Altaris Capital Partners, a private equity firm that specialises in the healthcare sector.

The deal values the business at about 220 million euros ($304.7 million), a person familiar with the situation said, adding that it will be funded with equity only. Permira aims to refinance with a modest amount of debt at a later date, the person said.

The Quinn family and Creganna's management will retain a minority stake in the business.

Creganna makes components for use in minimally invasive medical procedures, namely parts for cathaters and speciality needles, for more than 240 companies. It has manufacturing sites in Ireland, the United States, Singapore and Korea.

The deal is Permira's first in the healthcare sector since it bought Euro Dental holding in 2000, a company it subsequently sold in 2004.

The firm re-established a healthcare investment team in 2008, headed by Sally Flanagan, to hunt for new deals in a sector that has proved a hot spot for private equity investment in 2010. [ID:nLDE64K0TQ] (Reporting by Simon Meads; editing by Elaine Hardcastle) ($1=.7219 Euro)

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