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Scoop: PE-backed microscope maker Prescott's exploring sale

Illustration of a view through a microscope looking at dollar sign-shaped cells

Illustration: Natalie Peeples/Axios

Atlantic Street and Linden Capital Partners-backed medical device and lab equipment company Prescott's is in the late stages of a sale process, sources tell Axios.

Why it matters: Private equity-driven buyouts in medtech totaled $3.9 billion last year — greater than the last three years combined, per PitchBook — and shows no sign of slowing.

Behind the scenes: The process launched in November and a deal could be signed by Q2 or Q3, sources say.

  • Harris Williams is selling the company, which generates EBITDA in the $15 million to $20 million range, sources say.
  • Houlihan Lokey is co-advising, one source says.

How it works: The Monument, Colo.-based medical device company services and sells refurbished and new microscopes to hospitals and surgical centers, primarily in the neuro, ophthalmic and ENT surgical specialties.

  • Founded in 1984, the company also services and repairs other laboratory equipment, such as anesthesia machinery.

Catch up quick: Atlantic Street Capital acquired the company through an LBO in July 2019 for an undisclosed amount.

  • Linden Capital Partners invested in May 2023.

State of play: PE-led medical device M&A has been picking up, with a wave of deals this quarter.

  • In February, Thomas H. Lee Partners agreed to buy medical products company Agiliti for a $2.5 billion take-private deal.
  • Also last month, Argosy recapitalized Command Medical Products, which offers manufacturing services to produce single-use disposable medical devices.
  • Shore Capital acquired medical device company C2Dx for an undisclosed price in January.

Harris Williams declined to comment. Atlantic Street, Linden Capital Partners and Houlihan Lokey did not respond to Axios' request for comment.

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