Medin Corporation, a manufacturer of sterilization cases and trays for the orthopedic implant and instrument industry, has been acquired by Seven Point Equity Partners. Seven Point completed the acquisition through an all-equity structure without using outside lenders. At closing the company was renamed Medin Technologies.
Medin Technologies designs and manufactures a variety of medical products but has a core focus on custom-designed sterilization cases and trays that are sold to OEMs providers of orthopedic implants and instruments. The company operates three manufacturing plants in the northeastern US and is headquartered near Newark in Totowa, NJ (www.medin.com).
At closing, which occurred on December 31, 2016, Andy Novotny, a Seven Point Operating Partner who has experience in orthopedic medical device manufacturing, was named the new Chief Executive Officer of Medin. Jay Schainholz, the former majority owner of the company, has retained a minority ownership position in the company and will serve as its Chairman.
Seven Point’s operating strategy for Medlin is the consolidation of certain of the company’s production facilities; investing capital in new manufacturing capabilities; adopting lean practices
throughout the production operations; improving purchasing discipline and supplier partnerships; and developing a more aggressive sales and marketing strategy.
“Medin offers an attractive investment platform in the medical manufacturing market. We look forward to working with Andy, Jay, and the entire Medin team to enhance the company’s manufacturing capabilities and broaden Medin’s offerings to its customer base,” said Tom Burchill, Seven Point’s Managing Partner.
Seven Point Equity Partners makes control equity investments of $10 million to $40 million in lower middle market companies, primarily in North America, that have EBITDA ranging from negative to $20 million and revenues of between $25 million and $250 million. Sectors of specific interest include industrial manufacturing and distribution, particularly medical products, building products, aerospace, automotive components, and energy services; business services, particularly trade shows; financial services, particularly asset management; and consumer products. The firm is based in Westport, CT (www.sevenpointpartners.com).
“Medin is our firm’s second platform investment and our first transaction in the medical manufacturing sector,” said Seven Point Partner Mark Kammert. “This investment highlights our strategy of targeting businesses with complex capital and operational needs that fall within the expertise and prior industry experience of the firm’s Operating Partners and investment principals. Our Operating Partner, Andy Novotny, has developed an aggressive strategy to strengthen all aspects of Medin’s business and was instrumental in completing the recapitalization.”
Kinsella Group (www.kinsellagroup.com), a Chicago-based investment bank, was the financial advisor to Medin.
© 2017 Private Equity Professional | March 13, 2017
