Maranon Capital has completed a mezzanine debt investment in Young Innovations to support Linden Capital Partners acquisition of the company in a public-to-private transaction valued at approximately $314 million. Maranon was Agent for the lenders who provided a $65 million mezzanine tranche. Maranon also co-invested preferred and common equity in the transaction alongside Linden.
Young Innovations develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers. The company’s consumables product offering includes disposable and metal prophy angles, prophy cups and brushes, dental micro-applicators, moisture control products, infection control products, dental handpieces (drills) and related components, endodontic systems, orthodontic toothbrushes, flavored examination gloves, children’s toothbrushes, and children’s toothpastes. In addition, the company offers a line of diagnostic products that includes panoramic X-ray machines and related supplies. The company is based in East Earth City, MO (www.ydnt.com).
“We were attracted to the Young Innovations investment opportunity by the company’s excellent brand recognition and customer loyalty, its leading market share across a variety of products, and the recurring revenue stream associated with multiple categories of single use items” said Demian Kircher, Managing Director and the lead partner for Maranon Capital on the transaction. “In addition, we are pleased to complete our first investment with Linden, a leading healthcare private equity firm, and an experienced investor in the dental products sector.”
Other Maranon Capital team members involved in the Young Innovations investment included Laura Albrecht, Principal, and Andrew Eshelman, Associate.
Maranon Capital provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. The firm is currently managing over $550 million of committed capital. Maranon has offices in Chicago, IL; Birmingham, MI and South Bend, IN (www.maranoncapital.com).
Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: specialization on middle market healthcare and life science companies; integrated private equity and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-1-13