CIT Healthcare Finance was the Joint Lead Arranger in a $135 million senior secured credit facility to back Arlington Capital Partners’ July 2015 acquisition of Avalign Technologies, a manufacturer of orthopedic implants and instruments, from RoundTable Healthcare Partners.
Avalign Technologies is a supplier of implants and instruments, specialty instrumentation, cutting tools, and cases and trays for the orthopedic medical device and specialty surgical markets. The history of Avalign Technologies began in October 2005 when RoundTable acquired Instrumed International, a manufacturer of surgical instruments, and then in January 2007 acquired Advantis Medical, a designer and manufacturer of case and tray organizing systems for surgical instruments, implants and medical devices. RoundTable combined the operations of Instrumed and Advantis under a newly formed company called Avalign Technologies. In August 2007, Avalign completed the add-on acquisition of Nemcomed, a designer and manufacturer of medical implants and instrumentation for orthopedic specialties. In May 2009, Avalign completed the add-on acquisition of NG Instruments, a family-owned manufacturer of surgical cutting tools for the medical industry. Today, Avalign Technologies operates under four divisions: Advantis Medical, Nemcomed, NG Instruments and Instrumed International. The company is headquartered north of Chicago in Lake Forest, IL (www.avaligntech.com).
This transaction represents the third financing that CIT has closed with Arlington Capital. “We’re pleased to lead this transaction as we put our knowledge and expertise in the medical device manufacturing space to work for Arlington,” said William Douglass, Group Head and Managing Director of CIT Healthcare Finance, “Avalign is focused on serving the growing $36 billion global orthopedic market, serving OEM customers who supply highly demanded technologies to the industry’s fastest growing end-markets, including extremities, sports medicine and trauma.”
CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).
“Avalign is an established leader in the large and growing orthopedic precision manufacturing market,” said Matt Altman, a Partner at Arlington Capital. “Recognized across the industry for its superior engineering and manufacturing capabilities, Avalign provides significant value to its OEM partners through design improvement, speed to market acceleration and cost reductions.”
Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software. The firm is based in Washington, DC (www.arlingtoncap.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 8-17-15
