Anacacia Capital, the Sydney-based buyout firm that was recently recognised as the manager of the world’s top performing private equity fund, has agreed to buy the Hills Healthcare Equipment business from investment holding company Hills Holdings.
ASX-listed Hills Holdings said Monday it has agreed to sell its wholly-owned Hills Healthcare Equipment business to K Care Pty Limited, owned by the management team and Anacacia.
Financial terms of the deal were not disclosed.
Perth-based Hills Healthcare is currently part of Hills Holdings’ broader Lifestyle & Sustainability division, which includes an array of businesses and makes a number of Hills branded products.
“This divestment, which is expected to complete by the end of January, is in line with the restructuring initiatives and strategic settings outlined in November at our 2012 Annual General Meeting and is currently being implemented to better position the Group for the future,” Hills Holdings managing director Ted Pretty said in a statement.
“Hills will continue to explore opportunities in the healthcare industry but with an emphasis on offering products and services from within the group’s leading Electronics & Communications division rather than being a producer and distributor of assisted care equipment.”
The investment will be made through Anacacia Partnership II, which was reported to have raised A$125m ($130m) towards its A$150m ($157m) target by November last year.
The firm reached an A$75m first close for the vehicle in July 2012 – well above its A$50m target.
Anacacia Capital’s maiden fund achieved a 58 per cent annual gross IRR and was ranked as the most outstanding fund raised between 2006 and 2008 by Pensions and Investments magazine.
The new fund’s strategy will follow on from its predecessor, a $55m SME-focused fund that still holds interests in six portfolio businesses including language services company Appen Butler Hill, audio service business Norwest Productions and baby food company Rafferty’s Garde.
The firm has so far sold two investments from Anacacia Partnership I, including lab chemicals and consumables company Lomb Scientific. The business was sold to NYSE-listed ThermoFisher, an exit that generated a 4.3 times return for the firm.
The Wall Street Journal previously reported that the firm could sell Rafferty’s Garden to global food conglomerate HJ Heinz Co if approved by the Australian Competition and Consumer Commission.
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