Scoop: Infusion Associates coming to market
Boyne Capital-backed infusion provider Infusion Associates is coming to market, sources familiar tell Axios.
Why it matters: As care continues to shift away from hospitals, the $100 billion-plus infusion therapy market is projected to balloon at 8.6% CAGR through 2025, per a 2023 Harris Williams report.
Details: Triple-Tree will be shopping the Grand Rapids, Michigan-based company at the JPMorgan health care conference next week, per the sources, who spoke on condition of anonymity due to the sensitive nature of the news.
- Infusion Associates is generating at least $10 million in EBITDA, the sources say, with one source noting the business could be generating as much as $20 million.
How it works: At 13 locations across Michigan, Minnesota and Ohio, Infusion Associates offers ambulatory services for chronic conditions such as Crohn's disease, ulcerative colitis, multiple sclerosis, rheumatoid arthritis, and several rare genetic diseases.
- Miami-based Boyne has owned Infusion Associates since it took a majority stake in the company for an undisclosed price in 2018.
Be smart: Investors have been eager to pump funds into infusion networks outside hospitals to disrupt a market that's been historically dominated by OptumRx and Option Care Health.
State of play: As a result, the infusion services space has become highly fragmented in recent years, with a handful of sizable sponsor-backed and independently-owned targets.
- Peak Rock Capital-backed Paragon Infusion plans to launch a sale process sometime this year, sources told Axios in August.
- Carousel Capital-backed Palmetto Infusion put itself up for sale in 2022, but pulled the process over discord in valuation and choppy debt markets.
- In 2022, Pritzker Private Capital sold its infusion business Kabafusion for more than $1 billion to Novo Holdings, for an EBITDA multiple of approximately 20x.
Plus, venture capitalists have also been drawn to the sector as of late. Relevant recent deals include:
- Hybrid infusion treatment startup Uptiv Health last August bagged $7.5 million in seed funds with Redesign Health participating.
- Tech-enabled infusion provider Local Infusion last November harvested $10 million in a Series A round led by Blisce.
Meanwhile, infusion therapy giant Option Care may still be looking for a target after losing its bid for home health player Amedisys to UnitedHealth-owned Optum last June.
- Elevance Health (formerly known as Anthem) is another potential buyer in the space, with sources previously telling Axios the company could chase Paragon Infusion.
Infusion Associates declined to comment. Boyne Capital and Triple-Tree did not respond to requests for comment.