MVC Private Equity has acquired AccuMED, a contract manufacturer of healthcare products, in partnership with Yukon Partners which acquired a minority equity interest in AccuMed and provided subordinated debt financing in support of the transaction. The senior management team of AccuMED will own a meaningful interest in the company and will continue to operate the business on a day-to-day basis.
AccuMED provides engineering services and contract manufacturing to healthcare product companies and OEMs of medical devices and supplies, including respiratory disorder, vascular compression, and patient transfer products. The company has a specialty in textile-based class I and II medical products that touch the body. AccuMED’s manufacturing capabilities include flame lamination, CNC die cutting, thermoforming, ultrasonic welding, programmable sewing, inspection, packaging, testing, warehousing and logistics. The company has nearly 1,000 employees and is headquartered in Buffalo with additional manufacturing operations in the Dominican Republic and Taiwan (www.accumedtech.com).
“AccuMED holds a leading position in a niche industry with strong underlying fundamentals and opportunities for growth,” said Peter Seidenberg, Managing Director at MVC. “As healthcare costs continue to outpace inflation, the need for device manufacturers to deliver high quality, competitively-priced products has never been greater. We look forward to providing operational and strategic support to help AccuMED further cement its industry-leading position and take advantage of market opportunities.”
MVC invests from $3 million to $25 million in middle market companies that have revenues of $10 million to $150 million and EBITDAs of $3 million to $25 million. Sectors of interest include consumer products; industrial manufacturing and services; food and food services; financial services; value-added distribution; and specialty chemicals. The firm is traded on the NYSE under the symbol MVC and is headquartered near White Plains in Purchase, NY (www.mvccapital.com).
“We are excited to partner with management and MVC to support the acquisition of AccuMED. The company has established itself as a critical manufacturer of quality products for the healthcare industry. Yukon is fortunate to provide capital to AccuMED and to serve as a partner who values their strategic growth initiatives. We also look forward to benefiting from MVC’s investment stewardship,” said Bill Dietz, Managing Partner of Yukon.
Yukon Partners makes subordinated debt and equity investments of $10 to $40 million in middle market, private equity sponsored business transactions. The types of transactions that Yukon invests in includes buyouts, growth and platform strategies, recapitalizations, mergers & acquisitions, public to private buyouts, and refinancings. The firm is based in Minneapolis (www.yukonpartners.com).
“Today’s announcement marks a milestone in our history,” said Mark Sater, CEO of AccuMED. “By working with two established financial firms, AccuMED has secured the capital and expertise necessary to execute our growth strategy. MVC and Yukon have a track record of successfully partnering with management teams to build value. We look forward to strengthening our relationship with both firms while working together to achieve our collective goals.”
BMO Harris Bank, as the administrative agent, provided the senior debt with Fifth Third Bancorp also participating in the transaction as the documentation agent.
2014 PEPD • Private Equity’s Leading News Magazine • 10-23-14