H.I.G. Capital, the Miami-based global alternative investment firm, is making waves in the healthcare sector and adjacent industries. With $65 billion of capital under management, H.I.G. has recently executed numerous acquisitions and divestitures that signal a strategic shift towards innovative health-related technologies and services.
Betting Big on Non-Invasive Cancer Treatment
H.I.G.’s latest acquisition, announced on October 1, 2024, brings SkinCure Oncology into its fold. This Burr Ridge, Illinois-based company is at the forefront of non-invasive skin cancer treatment, offering image-guided superficial radiation therapy (IG-SRT) through its GentleCure™ platform.
“There are tremendous opportunities ahead for the Company,” said Scott Zhu, Managing Director at H.I.G., highlighting SkinCure’s “strong track record of delivering outstanding outcomes for both its physician partners and their patients.”
With more than 500 physician partnerships and more than 100,000 patients treated, SkinCure Oncology represents a significant foothold in the growing market for alternative cancer treatments. The move aligns with increasing patient demand for non-surgical options in cancer care.
Cashing In on Pharmaceutical Manufacturing
In a lucrative exit, H.I.G. Capital sold BIOVECTRA, a contract development and manufacturing organization (CDMO), to Agilent Technologies for $925 million on September 23, 2024. This sale marks a successful conclusion to H.I.G.’s investment in the company, which began in November 2019.
Oliver Technow, BIOVECTRA’s C.E.O., expressed gratitude for H.I.G.’s role, stating, “We are grateful for H.I.G.’s role in our success these past five years and are excited to further build on this success with Agilent through this synergistic pairing.”
The substantial return on this investment demonstrates H.I.G.’s ability to identify and nurture promising companies in the pharmaceutical supply chain.
Tapping into the Natural Products Boom
Recognizing the growing consumer preference for natural and organic products, H.I.G. acquired a majority stake in Naturalia Tantum S.p.A. on July 23, 2024. This Italian company specializes in organic beauty and personal care products, natural food supplements, and eco-friendly home and pet care items.
Francesco Iovine, C.E.O. of Naturalia Tantum, expressed enthusiasm about the partnership, saying, “We are thrilled to partner with H.I.G. to further accelerate our growth path in Italy and abroad.”
This investment positions H.I.G. to capitalize on the burgeoning market for natural health and wellness products, a sector that has seen robust growth in recent years.
Supporting Healthcare Infrastructure
While not directly in the healthcare sector, H.I.G.’s acquisition of Action Elevator on September 3, 2024, demonstrates the firm’s holistic approach to healthcare investment. Action Elevator provides crucial maintenance and modernization services for elevators in various sectors, including healthcare facilities.
This move and Action’s simultaneous acquisition of Century Elevator expands H.I.G.’s footprint in essential services that support healthcare infrastructure. Action Elevator serves approximately 500 commercial, healthcare, education, municipal, and residential customers.
A Strategic Shift in Focus
These recent transactions paint a picture of H.I.G. Capital’s evolving strategy in the healthcare sector. From innovative cancer treatments and pharmaceutical manufacturing to natural wellness products and healthcare facility services, H.I.G. is diversifying its portfolio while maintaining a focus on health-related industries.
Industry analysts note that this approach allows H.I.G. to spread risk while positioning itself to benefit from multiple growth areas within the broader healthcare ecosystem.
As the healthcare landscape continues to evolve, with increasing emphasis on non-invasive treatments, natural products, and efficient infrastructure, H.I.G. Capital appears well-positioned to capitalize on these trends. The investment community will watch closely to see how these strategic bets pay off in the coming years.
