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Devicor: Building A Global Med Tech Business to Advance Women’s Health

March 29, 2016

Devicor Medical Products was a Leaders Strategy™ partnership formed with Tom Daulton, a former executive at Cardinal Health (NYSE: CAH), to acquire medical device companies and products. Over the course of four years, Devicor orchestrated a complex carve-out from Johnson & Johnson (NYSE: JNJ) and executed several strategic add-ons to build a global med tech business focused on women’s health. The company’s commitment toward advancing technology to help clinicians accurately diagnose breast cancer through minimally invasive procedures ultimately generated strategic interest, which led to its sale to Danaher in December 2014.

Devicor was formed in 2008 after closely collaborating with Mr. Daulton around a thesis to pursue acquisitions in the medical devices industry segment, with a particular strategy to target interventional hospital procedures. Mr. Daulton was previously a member of Cardinal’s Global Leadership Team, and was responsible for the Interventional Specialties and MedSystems divisions, both fast-growing interventional product businesses. Together, GTCR and Mr. Daulton saw an opportunity to pursue acquisition opportunities and build a scale med tech player in this attractive industry segment. In developing the Devicor investment thesis, GTCR was able to leverage its healthcare domain expertise established over the past 30 years.

In 2010, Devicor completed its initial platform acquisition with the successful corporate carve-out of the Mammotome breast care business from Johnson & Johnson. Through the complex, two-year carve-out, Devicor built dedicated manufacturing, transitioned the commercial business in more than 50 countries, secured new regulatory permits in several geographies and reinvested heavily in new product research and development. As a result, Devicor was able to create a standalone, fully integrated, global medical device business and was able to leverage its commercial platform to complete several complementary add-on acquisitions.

In October 2014, Devicor announced an agreement to sell to Danaher Corporation’s (NYSE: DHR) Leica Biosystems, a leading provider of anatomical pathology solutions and automation used to advance cancer diagnostics.