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Morgan Stanley Capital scoops up Prescott’s; West Monroe, Stellex benefit from onshoring tailwinds

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

We have a lot to cover this morning. We will start with a pair of healthcare deals, including an exclusive from Morgan Stanley Capital Partners. The New York-based firm agreed to acquire a company that focuses on outsourced clinical engineering services for healthcare providers. Stay tuned to what Steve Rodgers, a managing director and head of healthcare investing at MSCP, said about opportunities in this sector.

Next, we are taking a deep dive into Court Square Capital Partners’ exit from Advanced Diabetes Supply Group, a diabetic medications and resources distributor. The deal is expected to close early next year.

Turning to our ongoing series exploring the factors that drove deals in various sectors through 2024, we’re looking at markets where PE firms can continue seizing on the onshoring theme next year.

And finally, from today’s deal news, New Heritage Capital has made an investment in a US-based maritime supplier of fluid control valves, actuators, strainers, parts and services to the US Navy and commercial marine industry. We have the details below about the target.

Outsourcing services

Morgan Stanley Capital Partners has agreed to acquire Prescott’s, which provides outsourced clinical engineering services for healthcare providers, from Atlantic Street Capital. My colleague John R Fischer was the first to report on the deal this morning.

Upgrade to the premium version of the Wire to learn more about what Steve Rodgers, a managing director and head of healthcare investing at MSCP had to say about this deal.

Long-term perspective

In November, Cardinal Health announced its acquisition of Advanced Diabetes Supply Group (ADSG), a diabetic medications and resources distributor, from Court Square Capital Partners for approximately $1.1 billion in cash.

Premium subscribers to the Wire learn more on this deal.

Closer to home

We are turning to onshoring this morning for our ongoing series that explores the factors fueling deal activity in various sectors throughout 2024.

Over the last couple of years, PE firms investing in industrial and manufacturing sectors have been betting on onshoring and nearshoring trends. In 2022 and at the peak of the global supply chain crisis, PE Hub took a deep dive into the onshoring trend to explore how PE firms were seizing on the theme.

Upgrade to the premium version of the Wire to learn more.

Maritime supplier of parts and services

New Heritage Capital has invested in JA Moody, a US-based maritime supplier of fluid control valves, actuators, strainers, parts and services to the US Navy and commercial marine industry.

Premium subscribers to the Wire can learn more on this deal.

That’s it for me today.

As always, I’d love to hear from you at obey.m@pei.group.

Nina Lindholm will bring you tomorrow’s Europe Wire, while Rafael Canton will bring you the US edition.

Cheers,

Obey

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They said it

“Outsourced clinical engineering businesses like Prescott’s are providing high-quality service at a significant discount compared to other service providers that hospitals might use. Hospitals also are facing labor shortages. Companies like Prescott’s can help them save money, so they don’t have to pay for high-cost additional staff.”

— Steve Rodgers, managing director and head of healthcare investing at MSCP on his firm’s acquisition of Prescott’s.