CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has closed an investment in Healthcare Safety Holdings LLC (HSH) and now holds a majority stake in the company.
According to a filing with the Securities and Exchange Connection, CNL Strategic Capital purchased an approximately 74.9 percent interest for $17.3 million, and also made a $24.4 million debt investment in the form of senior secured notes.
Founded in 1988 and headquartered in Excelsior, Minnesota, HSH produces daily-use insulin pen needles, syringes and related product offerings for the human and animal diabetes care markets. The company produces branded and private label products sold primarily through distributors to retail pharmacies, veterinary clinics and dialysis centers, as well as via e-commerce channels.
CNL Strategic Capital seeks to acquire controlling equity stakes in combination with loan positions in what it deems as durable and growing middle-market businesses. The company is externally managed by CNL Strategic Capital Management and Levine Leichtman Strategic Capital. As of the first quarter of 2020, the company’s investment portfolio had a fair value of $163.3 million.