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Thomas H. Lee Partners taking Agiliti private for $2.5B

Feb 26, 2024
illustration of a heart rate monitor

Illustration: Sarah Grillo/Axios

Thomas H. Lee Partners plans to take medical products company Agiliti private at a $2.5 billion valuation, including debt.

Why it matters: The price tag includes a 35% premium to Friday's close, another promising sign for companies and investors.

By the numbers: THL, which already owned about 73% of Agiliti, plans to pay $10 in cash for each share of the company it doesn't currently own.

  • The deal is expected to close in the first half of this year.

How it works: Agiliti helps hospitals and health systems manage their medical equipment, providing supply chain visibility to reduce costs.

  • The company also offers clinical engineering services, which help hospitals and labs maintain installation or upkeep of medical devices and products.

Catch up quick: After retiring in March 2023, CEO Tom Leonard came back to the helm in October of that year.

  • Leonard succeeded Tom Boehning, who served in the top spot for less than a year and was terminated without cause, per an SEC filing.

Between the lines: Given Leonard led Agiliti through its 2021 IPO, it's no surprise to see him behind another major strategic event for the company.

State of play: PE-driven buyouts in medtech accelerated in the latter half of 2023, totaling $3.9 billion for the full year — greater than the last three years combined, per PitchBook.

What we're watching: Businesses that have been held by private equity for five years, as premium prices could trigger dealmaking.

  • For instance, Atlantic Street has held surgical instruments company Prescott's since 2019, and Audax has been invested in fluid resuscitation device company Belmont Medical since 2017.
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