healthcare products

MVC and Yukon Partners Acquire AccuMED

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MVC Private Equity has acquired AccuMED, a contract manufacturer of healthcare products, in partnership with Yukon Partners which acquired a minority equity interest in AccuMed and provided subordinated debt financing in support of the transaction.  The senior management team of AccuMED will own a meaningful interest in the company and will continue to operate the business on a day-to-day basis.

AccuMED provides engineering services and contract manufacturing to healthcare product companies and OEMs of medical devices and supplies, including respiratory disorder, vascular compression, and patient transfer products. The company has a specialty in textile-based class I and II medical products that touch the body.  AccuMED’s manufacturing capabilities include flame lamination, CNC die cutting, thermoforming, ultrasonic welding, programmable sewing, inspection, packaging, testing, warehousing and logistics.   The company has nearly 1,000 employees and is headquartered in Buffalo with additional manufacturing operations in the Dominican Republic and Taiwan (www.accumedtech.com).

“AccuMED holds a leading position in a niche industry with strong underlying fundamentals and opportunities for growth,” said Peter Seidenberg, Managing Director at MVC. “As healthcare costs continue to outpace inflation, the need for device manufacturers to deliver high quality, competitively-priced products has never been greater. We look forward to providing operational and strategic support to help AccuMED further cement its industry-leading position and take advantage of market opportunities.”

MVC invests from $3 million to $25 million in middle market companies that have revenues of $10 million to $150 million and EBITDAs of $3 million to $25 million. Sectors of interest include consumer products; industrial manufacturing and services; food and food services; financial services; value-added distribution; and specialty chemicals. The firm is traded on the NYSE under the symbol MVC and is headquartered near White Plains in Purchase, NY (www.mvccapital.com).

“We are excited to partner with management and MVC to support the acquisition of AccuMED. The company has established itself as a critical manufacturer of quality products for the healthcare industry. Yukon is fortunate to provide capital to AccuMED and to serve as a partner who values their strategic growth initiatives. We also look forward to benefiting from MVC’s investment stewardship,” said Bill Dietz, Managing Partner of Yukon.

Yukon Partners makes subordinated debt and equity investments of $10 to $40 million in middle market, private equity sponsored business transactions.  The types of transactions that Yukon invests in includes buyouts, growth and platform strategies, recapitalizations, mergers & acquisitions, public to private buyouts, and refinancings. The firm is based in Minneapolis (www.yukonpartners.com).

“Today’s announcement marks a milestone in our history,” said Mark Sater, CEO of AccuMED. “By working with two established financial firms, AccuMED has secured the capital and expertise necessary to execute our growth strategy. MVC and Yukon have a track record of successfully partnering with management teams to build value. We look forward to strengthening our relationship with both firms while working together to achieve our collective goals.”

BMO Harris Bank, as the administrative agent, provided the senior debt with Fifth Third Bancorp also participating in the transaction as the documentation agent.

2014 PEPD • Private Equity’s Leading News Magazine • 10-23-14

Ancor and Merit Exit Carex Health

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Ancor Capital Partners and Merit Capital Partners have sold their portfolio company Carex Health Brands to Roscoe Medical, a portfolio company of Tenex Capital Management.

Carex Health Brands sells home healthcare products including home medical equipment, medication compliance, and reusable hot/cold products sold through pharmaceutical wholesalers, durable medical equipment dealers and national retail FDM (food, drug and mass merchants) chains. Brand names include Carex, Apex, Bed Buddy and TheraMed. The company was founded in 1979 and is headquartered in Boston (www.carex.com).

Ancor and Merit acquired Carex Health Brands in 2010, and led the company through three strategic acquisitions to in order to diversify its product line and customer base. Carex is the fifth investment that Merit has made in partnership with Ancor.

“We are extremely proud of the accomplishments that Carex has made in the three years since we acquired the company,” said J. Randall Keene, Managing Director at Ancor. “During this time frame, we made acquisitions of Detach N’ Go, Uplift Technologies and Thermionics. The company also experienced organic growth by adding new customers and further penetrating existing customers. We are deeply appreciative of the management team and the partnership they embraced with Ancor and Merit.”

Ancor Capital Partners invests in companies with enterprise value of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is based in Fort Worth (www.ancorcapital.com).

Merit Capital Partners invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. Merit is currently investing its fifth fund, Merit Mezzanine Fund V, LP, with total commitments of $612.5 million. The firm was founded in 1993 and is based in Chicago (www.meritcapital.com).

Roscoe Medical, acquired by Tenex in July 2013, is a manufacturer and distributor of healthcare products such as pain management; respiratory therapy; home medical equipment; sleep therapy; and health and beauty products. The company has relationships with over 3,100 customers that serve patient and consumer care end markets including chiropractors, physical therapists, pain management physicians, internet retailers and home care dealers. Roscoe Medical is headquartered south of Cleveland in Strongsville, OH (www.roscoemedical.com).

Tenex Capital Management invests up to $100 million in middle-market companies in the transportation, industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).

“The chemistry we had with Ancor and Merit, coupled with their insight and commitment to capitalize external growth, enabled us to build the product and customer diversity that appealed to Roscoe Medical,” said Matt McElduff, President of Carex. “We look forward to this next stage of growth.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-3-14

RoundTable Acquires Santa Cruz Nutritionals

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RoundTable Healthcare Partners has completed the acquisition of Santa Cruz Nutritionals from Levine Leichtman Capital Partners. Santa Cruz Nutritionals is RoundTable’s fourth platform investment from its $600 million Fund III.

Santa Cruz Nutritionals (SCN) is a manufacturer of gummy vitamin, mineral, supplement and other nutraceutical products. The company was founded in 1968 and is headquartered in Santa Cruz, CA (www.santacruznutritionals.com).

Lester Knight, a Founding Partner and Co-Chairman of RoundTable, will serve as Chairman of the Board of Santa Cruz. Mike Westhusing, Chief Executive Officer, and Randy Bridges, Chief Financial Officer and Chief Operating Officer, will continue to lead the company’s management team and will serve as members of the Board.

“We are very excited to partner with Santa Cruz,” said Mr. Knight. “The gummy dosage formulation is extremely unique, in high demand and has significant room for growth. Mike and Randy have capitalized on this opportunity by building SCN into a market-leading, high quality manufacturer of these products. We look forward to working with them and their team to expand upon their current product offering to take advantage of positive market growth trends.”

Senior credit facilities for this transaction were led by GE Capital, Healthcare Financial Services. Senior subordinated notes were provided by a co-investor and by RoundTable Capital Partners II, a captive subordinated debt fund that makes fixed rate subordinated debt investments alongside the equity investments of RoundTable’s equity funds.

RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling of $400 million. The firm is based in Lake Forest, IL (www.roundtablehp.com).

Levine Leichtman Capital Partners manages approximately $6.5 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-30-13