Mid-market private equity firm Agilitas has acquired Frontier Medical Group, a medical device manufacturer that focuses on skin and wound care.
The vendor is Kester Capital which acquired Frontier as a UK-focused family-run business in 2013. Kester stated it has netted 3.4x and a 30% internal rate of return for its investors.
Frontier’s skin and wound care business was founded in 1997 through collaboration with NHS clinicians from the University Hospital of Wales in Cardiff to develop the Repose range of reactive air products to address the increasing clinical burden of pressure ulcers.
The company designs and manufactures products used in the prevention and treatment of pressure ulcers. It supplies acute and homecare markets in the UK and internationally and has an in-house research and development function which develops new products and range upgrades.
In 2016 Frontier acquired Toto, an automated lateral patient turning system which is an adjunctive therapy in the management of immobile patients and preventing pressure ulcers.
The company has 85 employees and operates from headquarters and a manufacturing facility in South Wales and offices in Berlin and Buffalo, New York. It has direct sales teams in the UK, Germany and the US, and a network of distributors across 18 countries.
Anael Le Youdec of Agilitas, who is joining the board of Frontier Medical Group, said: “We are delighted to be backing Frontier Medical Group’s efforts to bring its innovative skin and wound care products to even more patients around the world. We are excited to back such a talented management team to capture the multiple avenues of business transformation open to the company and in doing so help it to develop new high-quality solutions and expand its geographic reach further.”
Simon Jackson, chief executive of Frontier Medical Group, added: “This transaction is in line with our global strategy as we continue to invest in strengthening our skin and wound care business in both the UK and international markets. It offers us a great opportunity as we reinforce our position as a company oriented to offering clinically and cost-effective solutions to our customers, launch further new products and open a new head office and manufacturing site later in 2021.”
Martin Calderbank, managing partner at Agilitas, commented: “Frontier Medical Group is a high-quality and defensible business that provides critical products, and which benefits from a clear alignment between shareholder value creation and societal good, based around the effectiveness of its products. The work Agilitas will undertake with management to take the Company’s growth to the next level will allow it to have an even greater positive impact on patient outcomes and help further reduce total treatment costs for health service providers.”
Agilitas was advised on the transaction by CIL (commercial), PwC (financial transaction services), Ernst & Young (tax and structuring), Marsh (insurance) and Ashurst (legal).
Kester was advised by Deloitte (lead advisory and debt advisory), Travers Smith (sell side legal), Grant Thornton (vendor financial and tax due diligence), L.E.K. (vendor commercial due diligence), Arrowpoint Advisory (management advice) and Pinsent Masons (management legal).
Date published: June 2, 2021