Hammond, Kennedy, Whitney & Company (HKW) has sold Canadian Hospital Specialties and Benlan Inc. (collectively CHS) to Cortec Group. CHS has been a portfolio company of HKW since 2010.
CHS is a distributor and manufacturer of sterile, disposable, medical and surgical devices primarily to the Canadian healthcare market. The company was founded in 1967 and is based near Toronto in Oakville, Ontario (www.chsltd.com).
“CHS has become a niche market leader in the Canadian hospital market, primarily due to its long industry tenure, outstanding management team, unique product portfolio and tremendous customer service capabilities,” said Glenn Scolnik, Chairman of HKW and CHS. “David Enns and the entire management team are exceptional, and HKW is very pleased that the CHS team chose to partner with us in 2010. CHS is well-positioned for future growth with Cortec and we wish the management team continued success.”
Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 44 platform management buyouts of small middle-market companies throughout North America as well as 47 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).
Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $40 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).
TM Asante Healthcare Partners, the healthcare investment banking practice of TM Capital Corp. (www.tmcapital.com), served as financial advisor to CHS.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-14-13