Medical device reprocessor SterilMed Inc. has been bought by two private equity firms for an undisclosed sum.
The company’s new owners are Boston-based Great Hill Partners and Cleveland-based Primus Capital Funds, according to a statement from SterilMed.
Maple Grove, Minnesota-based SterilMed reprocesses a vast array of single-use medical devices including guidewires, catheters, laser probes and chest retractors. The company says reprocessed devices typically cost about half the amount of new devices. SterilMed also repairs small healthcare equipment.
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SterilMed’s Chairman, Brian Sullivan, said the sale was an opportunity to create liquidity for longtime shareholders and partner with a company that would allow SterilMed to “continue on its current path.”
With the cost of healthcare soaring in the U.S., SterilMed appears well-positioned to capitalize on the stronger emphasis on cost containment by private firms and the federal government in the coming years. The company recently received some good press with a mention in a New York Times article on the growing problem of excessive medical waste generated by healthcare facilities — a problem that could be solved in part by more reprocessing of devices. Along with Ascent Healthcare Solutions, the two companies perform about 95 percent of device reprocessing in the U.S., the Times reported.
“We offer one of the best ways for hospitals to save money without making capital investments,” Sullivan said.
The company provides reprocessing and repair services to 1,700 healthcare clients in North America, according to the statement. The company was founded in 1997 and has received clearance from the Food and Drug Administration for 42 products.
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SterilMed has clients in 49 states (Alaska is the exception) and has about 700 employees, Sullivan said.
Sullivan will remain chairman of SterilMed’s board.
Photo from flickr user volpelino
