The Pierceton, Indiana-headquartered orthopaedic instruments and devices maker has hired investment bank William Blair to manage the sale process, said Dow Jones, citing two people with knowledge of the situation.
Altaris and Seidler backed Paragon with a $25m investment in 2005.
The report noted that valuation of medical device companies has been hit by a 2.3 per cent tax on medical devices introduced as part of the 2010 US Affordable Care Act.
A successful exit would be helpful in attracting LPs to Altaris’ third fund, which is seeking $425m. The vehicle had no commitments as of May this year, according to a regulatory filing.
The vehicle is the same size as Altaris’ second fund, which was closed in 2008, four years after the firm raised its $300m debut fund.
The New York-headquartered firm currently has $775m of equity capital under management. It has invested in 35 healthcare businesses including healthcare services provider Intralign Health, medical device maker Paramit and travel health insurer International Medical Group.
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