KKR Acquires Continence Care Product Manufacturer Clinisupplies

KKR is bolstering its presence in the medical device market by acquiring Clinisupplies from Healthium. Neither company disclosed the deal’s terms.
 
Clinisupplies is a U.K.-based manufacturer and distributor of continence care products, including urinary collecting devices and catheters. Clinisupplies’ products are supplied to hospitals and pharmacies, while also available for delivery to patients directly through its home delivery services—“Clinidirect.” Clinisupplies is headquartered in Watford, London, and employs over 400 employees.Clinisupplies’ management team will continue to hold a minority position upon the transaction’s closing.

“Clinisupplies has a track record as a fully integrated provider of continence care solutions to clinics and patients across the U.K.,” KKR Senior Advisor Claus Bjerre said. “Its business model covers the entire value chain, from R&D and manufacturing to direct-to-patient sales and distribution, allowing the group to continuously understand and address the evolving needs of patients, clinicians, and caregivers alike. I look forward to collaborating with Clinisupplies’ management team in pursuing its ambitious growth plans.”

KKR is investing in Clinisupplies through KKR Health Care Strategic Growth Fund II, a $4 billion fund focused on investing in high-growth health care companies. KKR has a long track record of supporting health care companies globally, having invested approximately $17 billion in the sector since 2004.

“Clinisupplies is a proven market leader in collecting devices in the U.K. with a differentiated business model. This investment is another example of our Health Care Strategic Growth platform strategy in collaboration with proven operators in a thematic area we have been following for some time,” said Kugan Sathiyanandarajah, managing director and head of Europe for KKR Health Care Strategic Growth. “We are delighted to be bringing together a management team led by Paul [Cook] with a highly experienced advisory suite led by Claus [Bjerre].”

KKR was advised by Houlihan Lokey (financial advisor), Gibson, Dunn & Crutcher LLP (legal counsel), PWC (financial and tax) and BCG (commercial).
 
Claus Bjerre, KKR senior advisor and former CEO of Atos Medical AB and former president, North America, of Coloplast, will serve as chairman of Clinisupplies’ Board of Directors, where he will draw on his sector experience and help guide the group on its future growth. In addition to leveraging KKR’s broader advisor and expert network, industry veteran Douglas Le Fort, who brings more than 20 years of senior executive leadership experience, including as an Executive Committee member at ConvaTec Group, will also join the Board of Directors.
 
“We are thrilled to form this strategic partnership with KKR, and to be welcoming Claus and Douglas to our board. This transaction presents a pivotal growth opportunity for the business, and to be able to leverage their collective skills and expertise will be invaluable as we position the business for the future. With KKR’s global network and market knowledge, and with this strong suite of industry advisors, we will be able to expand into new products and geographies, helping to support more and more people and bringing us one step closer to our goal of becoming an international leader in the chronic care market,” Clinisupplies CEO Paul Cook said.
 
KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. 

Clinisupplies manufactures and supplies medical appliances specializing in continence products for managing acute and chronic conditions. The company also offers a portfolio of bandages and garments for the treatment of wounds and chronic skin conditions. Employing more than 400 people in the U.K., China and India, Clinisupplies supplies its products to the NHS and delivers direct to patients’ homes through Clinidirect, its dispensing appliance contractor.