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L Catterton expands healthcare remit with investment in KKR-backed PHC Holdings Corp

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Consumer-focused private equity major L Catterton has made a JPY20bn ($181m) investment in KKR-backed medical device and services business PHC Holdings Corp.

PHC specialises in diabetes management as well as life science, diagnostics and healthcare services. The deal marks L Catterton’s expansion into the medical devices and health data sector.

KKR agreed to buy 80 per cent of Japanese electronic group Panasonic’s healthcare division for JPY165bn ($1.67bn) in 2013.

Other backers of the Tokyo-headquartered business include Mitsui & Co, Life Science Institute and Panasonic Corp.

L Catterton managing partner Chinta Bhagat said, “The healthcare industry, and medical devices in particular, are rapidly shifting from a scientific and engineering orientation towards greater consumer-centricity.

“This positions L Catterton to leverage our deep insights and play a valuable role in the development of PHCHD’s future businesses, particularly in the US and Asia.”

L Catterton’s previous consumer healthcare services investments include FYI Doctors, ClearChoice, 98Point6, dentalcorp, FEMME – Laboratório da Mulher and Patient Point.

Other recent deals from the firm include picking up a majority stake in iconic sandalmaker Birkenstock amid the company reporting a record year despite the Covid-19 crisis.

L Catterton had hauled in more than $3.7bn for its ninth flagship fundraise by last September, putting it within touching distance of its goal.

The firm had filed to raise up to $4bn for L Catterton IX, but is yet to publicly annouce a final close.

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