Tuesday, July 12, 2011

PEU Goes Perfusion

Last year I looked into the history of Specialty Care, a for-profit healthcare company specializing in perfusion.  Specialty Care provides the staff and heart-lung machines used in open heart surgery.  The firm started as PsiCor, became a division of Baxter, spun off to Edwards LifeSciences, bought by Fresenius, then spun off again.  Somehow AIG's private equity unit (PEU) got a stake, which ended up with Altaris Capital Partners

I tracked public deal prices and they varied widely, $80 million, $133 million, and $45 million.  Private deal prices are unknown, but debt issued under SCSG EA provides a clue.

In the last month Specialty Care raised $123 million, then bought out perfusion rival Advanced Perfusion Care  Specialty Care's private equity owners include:

Altaris Capital Partners
Petra Capital Partners
American Securities

Specialty Care's past and present are America's health care future.   Over 40 years of corporate history, bought and sold five times in the last fifteen years.

The Federal Trade Commission approved American Securities investment in Specialty Care, whose business they call "unclear."

Clearly, Wall Street and PEU's have their greedy eyes set on health care.   They expect deal fees and huge profits.  Did I mention deal fees?  PEU's breed and breathe money.  How much can your heart and lungs handle in rising health care costs?