A well-known private equity investor has agreed to take a majority stake in Scottsdale-based Confluent Medical Technologies.
TPG Capital, the Texas-based private equity platform of San Francisco-based alternative asset management firm TPG announced the majority investment this week.
Confluent works with manufacturers of implants, minimally invasive delivery systems and other medical devices on design, development and production of components and finished devices. It's proprietary expertise includes high purity Nitinol, ultra-high density knitting of biomedical textiles and precision laser treatment of specialty polymers.
The company says it works with many of the world’s leading device makers (or OEMs) as well as smaller companies doing work in neuromuscular, structural heart, electrophysiology, aortic invention, peripheral vascular and ENT fields.
TPG cited Confluent’s depth of expertise and the breadth of its capabilities in manufacturing complex products as strengths that put the Scottsdale company in a good position for continued growth. Financial details of the deal were not disclosed.
“With an accomplished management team, robust pipeline, and long track record of product innovation, we believe the company is positioned to build on its market-leading reputation for quality and execution in some of the highest growth medical device end-markets,” said John Schilling, partner at TPG Capital, in a statement. “We look forward to working with Dean, the entire management team, and Ampersand to further invest in Confluent’s growth.”
Setting up its IPO
This latest investment comes in the same week that TPG said it was targeting a valuation of more than $9 billion on its initial public offering, the Dallas Business Journal reported.
The company said Jan. 4 that it commenced an offering of 33.9 million shares of stock, 28.3 million of which are being offered by the firm, at an expected price of $28 to $31 per share — totaling a proposed raise of between $792 million and $877 million.
TPG Capital has a history of investing in medical device and other health care companies, including BVI Medical, Exactech, Biomet, Fenwal, Asklepios BioPharmaceutical and Adare Pharmaceuticals.
Existing Confluent investor Ampersand Capital Partners, which has partnered with the Arizona company for the past decade, will continue to have a substantial minority interest.
“Confluent has grown substantially over the course of its 10-year partnership with Ampersand, and with the additional support and expertise of another leading health care investor like TPG, we are confident that we will continue to build upon our existing platforms and drive new opportunities for growth,” Confluent President and CEO Dean Schauer said in a statement. “Medical device OEMs are increasingly looking for trusted partners to support the design and manufacturing of essential products and components, and we look forward to continuing to build upon our highly specialized materials science, engineering and manufacturing capabilities to further support our customers.”
J.P. Morgan Securities LLC acted as exclusive financial adviser and Goodwin Procter LLP served as legal counsel to Confluent in this transaction.
