Chicago-based Twin Brook served as sole lead arranger and administrative agent for the deal with BPOC, a healthcare-focused private equity firm also headquartered in the Windy City. Faraaz Kamran, a Twin Brook partner, said the deal offers “further evidence that healthcare is more than ever a patient or caregiver driven choice”.
The sponsor purchased Cranial Technologies from Cortec Group in May 2017, which exited its investment after holding the company for five years.
The equity investment shop bought Cranial at a time when the median total enterprise value-to-revenue and total enterprise value-to-EBITDA for healthcare M&A stood at 8.8x and the 17.3x, respectively, according to a June 2017 report by Harris Williams & Co.
Founded in 1993, Tempe, Arizona-based Cranial Technologies works to treat positional plagiocephaly in infants three to 18 months of age. Cranial Technologies has treated over 100,000 babies, according to its website.
Also known as “flat-head syndrome,” plagiocephaly occurs when a baby spends too much time lying on his or her back, creating a flat spot. Cranial says one in ten babies require professional evaluation for this condition, which its helmets are designed to address.
Twin Brook, Angelo, Gordon & Company’s mid-market direct lending arm, completed several earlier healthcare deals this year. At the end of May 2018, Twin Brook partnered with healthcare-focused Linden Capital Partners, adding SeraCare Life Sciences to its portfolio via recapitalisation.
BPOC focuses exclusively on middle-market buy-out transactions, recapitalisations and growth platforms in the healthcare industry.