| NEW YORK
NEW YORK May 20 Clayton, Dubilier & Rice LLC is
in advanced talks to acquire wound care company Healogics Inc
from private equity peer Metalmark Capital Holdings LLC for
around $1 billion, according to people familiar with the matter.
CD&R has so far outbid other private equity firms in the
auction for Healogics, including TPG Capital LP and a consortium
of Ares Management LP and Leonard Green & Partners LP,
the people said this week.
The sources, who spoke on condition of anonymity because the
negotiations are private, cautioned that a final agreement with
CD&R had not yet been reached and that one of the other private
equity firms could still come back with a higher offer.
Representatives of Healogics, CD&R, Metalmark and TPG
declined to comment, while representatives of Ares and Leonard
Green did not respond to requests for comment.
Jacksonville, Florida-based Healogics and its affiliated
companies partner with more than 550 hospitals in the United
States to provide wound care services and treat about 200,000
patients annually, according to its website.
Reuters reported in January that Metalmark had tapped
Goldman Sachs Group Inc to explore a sale of Healogics.
In 2011, Healogics was created with the merger of two companies
- National Healing Corp and Diversified Clinical Services.
Metalmark received a majority equity stake in the combined
company by buying Diversified Clinical Services from another
private equity firm, The Jordan Company. Metalmark had acquired
a majority stake in National Healing in 2008.
The potential sale of Healogics underscores private equity's
interest in wound care. Large industry peer Kinetic Concepts
Inc, a maker of medical devices used in wound care, was taken
private in 2011 for $6.3 billion by a consortium comprised of
Apax Partners LLP and Canadian pension funds.
Citigroup Inc divested New York-based Metalmark last
year as the bank sought to comply with the Volcker rule, which
limits investment bank investments in illiquid asset classes.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York;
Editing by Jan Paschal)