Argosy Healthcare Partners has acquired Command Medical Products, a provider of contract manufacturing services for the production of single-use disposable medical devices.
Command’s clean room capabilities include tube extrusion, radio frequency welding, heat sealing and sterile barrier packaging that are used to manufacture an array of products including catheters, intravenous tubing sets, nasogastric tubes, and suction tubing; blood collection, drainage, and fluid bags; pressure cuffs and wound suction devices.
Command’s customers include medical device original equipment manufacturers and life science companies that are active in cell and gene therapy, drug delivery, robot-assisted endoscopy, fluid management, and other therapeutic areas.
Command was founded in 1987 by David Slick and today is led by CEO Jim Carnall and VP Sales and Marketing Stephanie McGee. The company is headquartered near Daytona in Ormond Beach, Florida, and operates seven ISO Class 7 cleanrooms across two manufacturing locations in Florida and Nicaragua.
An ISO Class 7 cleanroom (the ISO stands for International Organization for Standardization) is a controlled environment designed to minimize particulate contamination and is commonly used in the pharmaceutical, electronic manufacturing, and biotechnology sectors. For an ISO Class 7 room, the maximum allowable particle count is 352,000 particles per cubic meter of air that are 0.5 micrometers or larger in size. The ISO classification system goes from ISO Class 1 (the cleanest) to ISO Class 9 (the least clean), with each class having specific requirements for air cleanliness.
“We thank David Slick for entrusting our team with his company. We are very excited to partner with Jim Carnall, Stephanie McGee, and the entire Command team,” said Paul Barrett, a managing partner of Argosy. “Command has a long and successful operating history, talented team, and blue-chip customer base. We look forward to fortifying the already strong foundation and reinvesting in the commercial engine to accelerate growth.”
“We are proud to partner with Argosy,” said Mr. Carnall. “Their investment in our company will allow Command to scale and better serve our customers. I am also thrilled that our entire leadership team will remain at Command while we work together with Argosy to build out our next chapter of growth.”
According to Argosy, medical device and life sciences companies have increasingly turned to outsourced manufacturing to support the design and fabrication of their products. The trend is fueled by the requirements for accelerated time to market, cost-effective manufacturing, supply chain flexibility, and additional regulatory and compliance standards.
Argosy Capital formed Argosy Healthcare Partners in January 2021 and hired Mr. Barrett as a managing director to lead the new investment strategy. Argosy Healthcare makes majority control investments, in partnership with founders and management teams, in healthcare companies that have from $1 million to $3 million of EBITDA.
Argosy Capital makes control investments of $5 million to $25 million in niche manufacturing and business-to-business service companies with $20 million to $100 million of revenue and $3 million to $10 million of EBITDA. In July 2022, Argosy held a final and above-target closing of Argosy Investment Partners VI LP with $422 million in capital.
The buy of Command Medical Products was facilitated and managed by MedWorld Advisors, a Massachusetts-based middle market advisory firm that specializes in the medical technology, medical device manufacturing, and healthcare sectors.
© 2024 Private Equity Professional | February 23, 2024
