Innovatus Imaging, a newly created holding company formed by private equity firms Resilience Capital Partners and North Park Capital Partners, has acquired three medical device servicing and manufacturing companies.
The three acquired companies are Multi Vendor Service (MVS), a Pittsburgh-based provider of repair and maintenance services for non-Bayer radiology devices including ultrasound probes, magnetic resonance coils, computed radiography readers and dry film printers. MVS was acquired from Bayer Corporation; Wetsco, a Tulsa-based provider of repair services for standard and 3D/4D ultrasound probes. Wetsco has had an exclusive services agreement with MVS since 2008; and MD MedTech (MDMT), a Denver-based designer and manufacturer of medical ultrasound products for the OEM, third-party repair and research markets. Before becoming part of Innovatus, all three of these businesses had worked together through strategic alliances and supplier relationships for more than a decade.
MVS, Wetsco, and MDMT employee approximately 170 people and the operations will remain in Pittsburgh (headquarters), Tulsa and Denver. Wetsco President Dennis Wulf will become CEO of Innovatus Imaging, with MVS General Manager Bill Kollitz becoming President and COO, and MDMT co-founder Michael Labree becoming the new company’s Chief Technology Officer.
“The creation of Innovatus Imaging through the acquisitions of MVS, Wetsco and MDMT gives us the scale and synergies to succeed in a market that is projected to grow by double-digit figures over the next five years as healthcare providers are asked to do more with less and extend the life of costly medical devices through repair and servicing,” said Steven Rosen, Co-CEO of Resilience Capital Partners.
In addition to the buys of MVS, Wetsco and MDMT, Innovatus has also agreed to acquire the European operations of MVS which are based in the Netherlands. This transaction is expected to close by March 31, 2018. In the interim, Innovatus will continue to serve European customers through a transitional service agreement with Bayer.
“All three of these businesses have enjoyed strategic partnerships and customer relationships over the years, and so it is a natural fit to combine them under a single company umbrella,” said Bassem Mansour, Co-CEO of Resilience Capital Partners. “This combination of talent and resources will enhance performance in high-growth areas, helping increase the new company’s offerings in medical equipment repair while enabling it to develop groundbreaking medical imaging products.”
Funding for the Innovatus Imaging transaction comes from Resilience Fund IV, which closed in October 2015 with $350 million in capital and from co-investors including North Park Capital Partners.
Resilience Capital Partners invests in middle market companies with $25 million to $250 million in revenues across a range of industries. Since its founding in 2001, Resilience has acquired 48 companies under 26 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).
North Park Capital Partners invests in companies that have enterprise values of $3 million to $30 million, are non-core business divisions of larger corporate parents or are undergoing some degree of operation distress, and are located in the “Rust Belt” – Pennsylvania, West Virginia, western New York, Ohio, Indiana, and Michigan. Sectors of interest include manufacturing, distribution, industrial services, healthcare products and services, retail and restaurants, consumer, and oil and gas. North Park was co-founded by Managing Partner John DiDonato in 2016 as a family office and is headquartered in Pittsburgh (www.northpark-capital.com).
© 2017 Private Equity Professional | September 7, 2017
