Linden Capital Partners has agreed to sell its portfolio company, CORPAK MedSystems, to publicly traded Halyard Health for total cash consideration of $174 million. This sale is expected to close before the end of the second quarter.
CORPAK develops, manufactures, and markets branded enteral products which are used for feeding or administrating drugs through the gastrointestinal tract. The company’s products – sold through a direct sales force and exclusive distributors – include CORFLO nasogastric and gastrostomy feeding tubes, FARRELL gastric pressure relief devices, and enteral feeding safety devices. CORPAK’s sales for fiscal year 2015 were approximately $54 million. The company is based in the Chicago suburb of Buffalo Grove and has sales offices in the US and the UK (www.corpakmedsystems.com).
Linden acquired CORPAK in September 2008. “Linden is proud to see CORPAK find a great home with Halyard,” said Brian Miller, a Linden Managing Partner. “During our seven-year ownership, Linden pursued its value creation plan that included an expanded strategy, an enhanced leadership team, a non-core divestiture, multiple joint ventures and acquisitions, new headquarters, direct international expansion, and intensive research and development for new product launches.”
Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. Just over a year ago, in March 2015, Linden closed its third private equity fund, Linden Capital Partners III, LP, at the oversubscribed hard cap of $750 million. The original target for the new fund was $600 million. Linden closed its first fund of $200 million in 2005 and its second fund of $375 million in 2010. The firm is based in Chicago (www.lindenllc.com).
Halyard Health (NYSE:HYH), formerly Kimberly-Clark Health Care, is a medical products manufacturer. Revenues in 2015 were approximately $1.6 billion. The company is headquartered north of Atlanta in Roswell, GA and has 11 manufacturing facilities with approximately 12,000 employees worldwide (www.halyardhealth.com).
Houlihan Lokey (www.hl.com) was the financial advisor to CORPAK and Kirkland & Ellis (www.kirkland.com) served as legal counsel.
Robert W. Baird & Co. (www.rwbaird.com) served as Halyard’s financial advisor and Alston & Bird (www.alston.com) served as legal counsel.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-13-16