Capital Four backs Axcel acquisition of Orion Diagnostica

The Finnish diagnostics company offers significant opportunities for growth in the US market.

Danish private debt investor Capital Four has arranged junior debt to support a Finnish healthcare acquisition.

The junior debt instrument will support private equity investor Axcel’s acquisition of Orion Diagnostica, which provides diagnostic and hygiene monitoring tests.

Orion Diagnostica was founded in 1974 as an independent division of Orion Corporation, a Finnish pharmaceutical company listed on Nasdaq Helsinki.

Capital Four said the company has a strong position in several European markets and in China. It is entering the US market to help its plans for long-term growth. In 2017 the company had net sales of €55 million and employs 300 people.

Capital Four is based in Copenhagen and has €10 billion of assets under management. It focuses purely on sub-investment grade credit in private debt, syndicated loans and high-yield bonds. Since 2013 it has been originating direct lending transactions, focusing on the mid-market in the Nordics and Northern Europe.

The deal for Orion Diagnostica is the 41st private debt transaction Capital Four has invested in.