medical devices

Aspen Surgical Products, a portfolio company of Audax Private Equity, has acquired Protek Medical Products.

Protek is a manufacturer of single-use ultrasonic probe covers and needle guides used in tissue biopsies, fluid aspiration, and vascular access procedures as well as protective covers for medical instruments and equipment.

Protek is led by CEO Rick Pruter and is headquartered north of Iowa City in Coralville, Iowa.

Aspen Surgical is a manufacturer of branded and private label single-use surgical products including scalpels, blades, wound care, fluid control, and other surgical products. The company, led by CEO Jason Krieser, was founded in 1999 and operates three manufacturing facilities with approximately 500 employees in Caledonia, Michigan (headquarters); Las Piedras, Puerto Rico; and Agua Prieta, Mexico.

“Protek Medical has a long, successful history of providing effective, easy-to-use disposable products that help address cross-contamination issues in the clinical environment,” said Mr. Krieser. “This line is clearly synergistic with our current manufacturing and commercial operations and it supports our mission to provide high quality single-use medical devices that improve safety and efficiency for the healthcare settings that we serve.”

Audax acquired Aspen Surgical from Hillrom (NYSE: HRC) in July 2019 for $170 million. In December 2019, Aspen Surgical acquired Beatty Marketing & Sales, a provider of orthopedic products, including foam positioners, sterile positioning kits, and suture retrievers to hospitals and ambulatory surgery centers.

Audax invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.

© 2020 Private Equity Professional | December 1, 2020

Resonetics, a portfolio company of GTCR, has acquired Caribou Technologies, a provider of metal fabrication services to medical device manufacturers.

Caribou’s services include centerless grinding, forming, coiling, machining, surface treatments, secondary processing, and cleaning and passivation. The company has a specialization in wires that are used in vascular intervention and minimally invasive surgery markets.

Caribou was founded in 2005 by Dan Honeck, Wendy Honeck and Connie Magnuson and operates from a 50,000 square foot facility located north of Minneapolis in Blaine, MN (www.cariboutechnologies.com).

GTCR formed Regatta Medical in partnership with operating executive Chip Hance in April 2017 to acquire medical device manufacturing companies. In February 2018, Regatta Medical acquired Resonetics, a medical device contract manufacturer from Sverica Capital Management.

Resonetics provides laser micro-machining manufacturing services for medical device and diagnostic companies, as well as other markets requiring laser processing of polymers and glass. According to the company, it offers the world’s largest capacity for laser micro-machining polymers in ultra-violet wavelengths. The company’s capabilities include precision laser prototyping and manufacturing, including creating features as small as one micron, a fraction of a human hair, in a variety of materials.

Resonetics also designs, builds and services purpose-built laser workstations to meet specific customer needs. Resonetics, led by CEO Tom Burns, is headquartered in Nashua, NH with additional facilities in Ohio, California, Costa Rica, Israel and Switzerland (www.resonetics.com).

The buy of Caribou broadens Resonetics’ capabilities in several markets, most notably neurovascular, structural heart and other interventional specialties. “Connie, Dan and Wendy have established a great reputation in the industry by building a talented team and providing innovative manufacturing processes,” said Mr. Burns. “They’ve also invested in an impressive 50,000 square foot facility that highlights their commitment to their employees and customers and provides a great venue to serve our expanding business needs.”

In October 2018, Resonetics acquired STI Laser Industries, an Israel-based contract medical device manufacturer specializing in laser cutting, micro-machining and finishing of miniature metal components (www.sti-laser.com).

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. Sectors of interest include business services; technology, media & telecommunications; healthcare, and financial services & technology. Since its inception in 1980, GTCR has invested more than $15 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

© 2019 Private Equity Professional | February 13, 2019

Belmont Instrument, a portfolio company of Audax Private Equity since December 2017, has acquired HC LIFE Ltd.

HC LIFE is a distributor of healthcare equipment to UK and Ireland-based hospitals, medical professionals, paramedics, the British Ministry of Defense, businesses, and government agencies. The company’s products include equipment for anesthesia, neonatal care, and laparoscopic surgical training. HC LIFE is headquartered in Berkshire, UK (www.hclifeltd.com).

“After years of close collaboration with Belmont as their distributor for the UK and Ireland, we are delighted to officially become part of the Belmont family and help accelerate the growth and presence of Belmont in Europe,” said Ian Niblock, Business Manager of HC LIFE.

Belmont is a maker of blood and fluid warming systems that are used in war zones, hospitals, ambulances, flight line helicopters, ski patrols or anywhere warm blood and fluids are needed. Belmont’s leading product is The Belmont Rapid Infuser RI-2 – more commonly referred to as “The Belmont” – which uses electromagnetic induction heating to provide control of temperature and infusion during fluid resuscitation.

The product is credited with saving thousands of lives by infusing warm blood and fluid into patients experiencing massive blood loss, while air removal features help keep the patient safe from air embolisms. The Belmont is used for high-volume infusions in operating rooms, emergency and critical care, labor and delivery, pediatric departments, and military hospitals. Belmont, led by CEO Brian Ellacott, was founded in 1980 and has 80 employees with a headquarters near Boston in Billerica, MA (www.belmontinstrument.com).

Belmont’s acquisition of HC LIFE extends its direct commercial presence in the UK and Ireland and provides Belmont with a logistics hub to better facilitate distribution of its products to European customers. “We are very pleased to announce the acquisition of HC LIFE and welcome its employees as the newest team members to Belmont,” said Mr. Ellacott. “This is the second among several planned strategic acquisitions for Belmont as we continue to expand our direct commercial presence globally.” In June 2018, Belmont acquired the product lines of MTRE Advanced Technologies, a manufacturer of non-invasive body temperature control products that is headquartered in Rehovot, Israel.

Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

© 2018 Private Equity Professional | September 5, 2018

Belmont Instrument, a portfolio company of Audax Private Equity since December 2017, has acquired the product lines of MTRE Advanced Technologies from Mennen Medical.

MTRE is a medical technology company that develops, manufactures and markets non-invasive solutions for body temperature control. The company’s product lines include the Allon system and ThermoWrap disposable garment which are used to control a patient’s temperature during surgery; CritiCool, a system used to induced hypothermia; and CritiCool Pro, an integrated temperature management and patient monitoring system.

MTRE’s products are used in a range of medical applications including cardio-vascular, organ transplant, pediatric, neurosurgery, and trauma, as well as in the evolving application of neuroprotective cooling therapy for stroke, cardiac arrest and traumatic brain injuries. MTRE is headquartered in Rehovot, Israel (www.mtre.com).

Belmont’s blood and fluid warming systems are used globally in war zones, hospitals, ambulances, flight line helicopters, ski patrols or anywhere warm blood and fluids are needed. Belmont’s leading product is The Belmont Rapid Infuser RI-2 – more commonly referred to as “The Belmont” – which uses electromagnetic induction heating to provide control of temperature and infusion during fluid resuscitation. The product is credited with saving thousands of lives by infusing warm blood and fluid into patients experiencing massive blood loss, while air removal features help keep the patient safe from air embolisms. The Belmont is used for high-volume infusions in operating rooms, emergency and critical care, labor and delivery, pediatric departments, and military hospitals.

Belmont’s acquisition of MTRE extends its portfolio to include non-invasive body temperature management products and advances the company’s strategy to invest in technologies that leverage the company’s existing product portfolio and sales channels. “This transaction is the first among several planned strategic acquisitions for Belmont as we build out a strong global product portfolio to better support clinicians and leverage our core strengths in anesthesiology, critical care and trauma to broaden the availability of these products in the market,” said Brian Ellacott, Chief Executive Officer of Belmont.

Belmont was founded in 1980 by Dr. George Herzlinger and has 80 employees with a headquarters near Boston in Billerica, MA (www.belmontinstrument.com).

Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

Mennen Medical Group, the seller of MTRE, is a provider of patient monitoring, diagnostic instrumentation, and clinical information systems used in hospitals for cardiac catheterization and other critical care applications. The company is based in Rehovot, Israel (www.mennenmedical.com).

© 2018 Private Equity Professional | June 21, 2018

MW Industries, a portfolio company of American Securities, has acquired LaVezzi Precision, a manufacturer of machined components used in the medical device industry.

LaVezzi was founded in 1908 as a manufacturer of components for motion pictures projectors but repositioned itself in the mid-1980s as a high-precision component supplier to the medical device market. Today, the company is a contract medical manufacturer of cardiovascular devices, orthopedic and dental implants, and metal components for laparoscopic and surgical devices made from titanium, surgical-grade stainless steel, implantable and non-implantable plastics.

LaVezzi has a 90,000-square-foot ISO certified manufacturing facility and headquarters located near Chicago in Bloomingdale, IL (www.lavezzimedical.com).

MW Industries is a supplier of springs, specialty fasteners, machined parts, and other precision components to more than 23,000 customers in 35 countries. The company’s more than 45,000 SKUs are sold through a combination of direct sales, catalogs and distributors to original equipment manufacturers and aftermarket customers in medical, aerospace, electronics, energy, agriculture, and construction sectors. MW Industries is headquartered near Chicago in Rosemont, IL (www.mw-ind.com).

“LaVezzi Precision has a proven history of providing innovative medical component solutions to address demanding customer requirements,” said John Bagnuolo, Chief Executive Officer of MW Industries. “LaVezzi will join the MW Medical Solutions family of brands, the most comprehensive offering of precision metal components to the global medical device market. We intend to grow the LaVezzi brand through the financial strength and capabilities of MW Industries.”

American Securities acquired MW Industries in October 2017 from Genstar Capital which in turn acquired it from Brockway Moran & Partners in June 2011.

American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $250 million of EBITDA.  Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $23 billion of capital under management and has offices in New York and Shanghai (www.american-securities.com).

© 2018 Private Equity Professional | May 3, 2018

Flexan, a portfolio company of Linden Capital Partners since February 2015, has acquired IntroMed, a contract manufacturer of patented sheath introducers.

Sheath introducers are long and wide bore catheters through which various other vascular catheters can be inserted. These products act as a “sheath” around these other catheters, providing a clean path and protected portal for these catheters to enter a blood vessel. IntroMed was founded in 2005 by Ron Wortley and is headquartered in Salt Lake City.

Flexan is an outsourced manufacturer of silicone, rubber, and thermoplastic components that are primarily used in medical devices but also in hearing technology, miniature pneumatics, industrial controls, and aerospace and defense products. The company, led by President & CEO Jim Fitzgerald and headquartered in Lincolnshire, IL, has manufacturing facilities in Chicago and Elk Grove Village, IL; Salt Lake City, UT; and Suzhou, China (www.flexan.com).

“We are excited to add IntroMed’s capabilities and technology to our array of contract manufacturing services,” said Mr. Fitzgerald. “Similar to the acquisition of Medron, IntroMed has a reputation for providing innovative, high-quality products and components to medical device OEMs.” Flexan acquired Medron, a contract manufacturer of catheters and endoscopy products, from Mr. Wortley in December 2016.

“The addition of IntroMed enhances our contract manufacturing service offering as part of our continued focus on investing in and expanding the services we offer our global customer base,” said Ron Labrum, a Linden Operating Partner.

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries with a specific interest in medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Linden’s strategy is based on three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).

© 2018 Private Equity Professional | April 17, 2018

Innovia Medical, a portfolio company of Shore Capital Partners since February 2015, has acquired Network Medical Products.

Network Medical is a designer and manufacturer of sterile single-use products for ears, nose, and throat (ENT) and ophthalmic procedures. The company’s product line includes its flagship CORONET brand of trephines (a surgical instrument with a cylindrical blade) which utilizes an exclusive blade technology to deliver a reliable and consistent vertical incision for improved wound architecture.

Network Medical is led by its CEO Neil Mercer and is headquartered in Ripon, UK (www.networkmedical.co.uk).

Innovia Medical designs, engineers and manufactures surgical products. In addition to its InstruSafe instrument protection line for infection control and sterilization in the critical care market, the company also manufactures ear, nose, and throat, and cosmetic surgery products through its Summit Medical and Shippert Medical business segments. Innovia Medical is headquartered in St. Paul with an additional office near Denver in Centennial, CO (www.innoviamedical.com).

“Since their founding in 1997, Network Medical has established themselves as a leading innovator and manufacturer in the ENT and ophthalmic space, and has achieved global success through their quality and niche designs,” said Terry Meredith, Chief Executive Officer of Innovia. “We have enjoyed working with the entire Network Medical team over the last several years as they have built a great company.  We felt Network was a perfect fit for our ophthalmic/ENT strategy and are excited to add their patented range of corneal graft instruments and disposable products to Innovia’s existing family of brands that includes ENT, InstruSafe, and Minne Ties. This acquisition helps to further strengthen Innovia’s portfolio of product solutions designed with both medical professionals and their patients in mind.”

“This is a transformational acquisition for Innovia, and is consistent with the strategic initiatives we targeted with Terry and the management team,” said Don Pierce, Partner at Shore and Chairman of Innovia. “This acquisition is an excellent fit with the broader strategy of building a leading specialty surgical platform. Network’s line of products will grow and diversify Innovia’s offerings and allow us to leverage our capabilities as well as the distribution network already in place.”

Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Shore targets equity commitments of $10 million to $15 million per platform.  Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services and contract research.  Shore was founded in 2009 and is based in Chicago (www.shorecp.com).

© 2018 Private Equity Professional | March 1, 2018

A&E Medical, a portfolio company of Vance Street Capital, has acquired the cardiothoracic closure business of RTI Surgical for $54 million in cash plus an additional $6 million in contingent cash consideration.

RTI’s cardiothoracic closure business (CCB) provides cardiothoracic sternal metal cable and plating systems. These systems are used to close median sternotomies – a type of surgical procedure in which a vertical incision is made along the sternum, after which the sternum itself is divided, or “cracked”. This procedure provides access to the heart and lungs for any number of surgical procedures. CCB’s products are sold under the Tritium SCP System brand name and are used in many leading cardiovascular hospitals across the world. Click HERE to go to the cardiothoracic closure business website.

“RTI’s cardiothoracic closure business is an excellent strategic fit with A&E Medical,” said Brian Martin, Partner at Vance Street Capital. “The combination of the two businesses will further enhance A&E’s engineering and product development pipeline as well as expand A&E’s reach across the world’s leading cardiovascular hospitals.”

A&E Medical is a designer and contract manufacturer of medical devices primarily focused on single-use products used in cardiovascular procedures. Specific products include high strength sternum closure systems, temporary cardiac pacing wires and extension leads, stainless steel sutures, surgical punches, electrosurgical instruments, and neurosurgical scalp clips. The company, led by its President Eric Sklar, was founded in 1968 and is headquartered south of New York in Farmingdale, NJ (www.aemedical.com).

“The addition of RTI’s advanced sternal closure products solidify A&E Medical as an innovator and leader in the sternal closure market. Under RTI’s stewardship, the cardiothoracic closure business has tripled in size over the past five years and we look forward to the business continuing that growth and innovation under the A&E platform,” said Mike Janish, Partner at Vance Street Capital.

RTI Surgical (NASDAQ:RTIX) is a provider of surgical implants that are used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures. CCB was one of several components of Pioneer Surgical Technology which RTI acquired in July of 2013. RTI is headquartered near Gainesville in Alachua, FL and has four manufacturing facilities throughout the US and Europe (www.rtix.com).

The buy of CCB is the second add-on acquisition for A&E Medical since being acquired by Vance Street in February 2016. The first add-on was completed in December 2016 when A&E Medical acquired Medical Concepts Europe, a Netherlands-based provider of bi-polar, quad-polar and mono-polar temporary pacing wires and single-use patient extension cables specifically for cardio-thoracic surgeries.

Vance Street makes control investments in companies with enterprise values of $30 million to $200 million and EBITDA of $5 million to $20 million. Sectors of interest include aerospace, defense, industrial, and medical. The firm is based in Los Angeles (www.vancestreetcapital.com).

Co-investing with Vance Street in the A&E Medical platform is Lexington Partners, Neuberger Berman Private Equity, RCP Advisors and Madison Capital Funding.

The buy of CCB was funded with senior debt from BMO Harris Bank and BBVA Compass, and mezzanine debt from Madison Capital Funding.

Stephens Inc. was the financial advisor to RTI and Paul Hastings was the legal advisor to Vance Street Capital.

© 2017 Private Equity Professional | August 9, 2017

MedPlast, a portfolio company of Water Street Healthcare Partners and JLL Partners, has acquired the medical device manufacturing services business of Vention.

MedPlast offers a range of engineering and manufacturing capabilities that support original equipment manufacturers (OEMs) with producing diagnostic, orthopedic, surgical and other medical products. The company employs more than 1,800 engineers, technicians and assembly workers who specialize in technical molding, advanced processing, device assembly and implantables with expertise in plastics. MedPlast has eleven ISO-certified facilities across the United States, China, Mexico and the United Kingdom and is headquartered in Tempe, AZ (www.medplastgroup.com).

The acquisition of Vention’s medical device manufacturing services business broadens MedPlast’s manufacturing capabilities by adding facilities in New Jersey, Michigan, Puerto Rico and Costa Rica and bolsters MedPlast’s position as one of the top services provider to medical original equipment manufacturers. The transaction is expected to double the size of MedPlast.

“This acquisition is a first and important step in our strategic plan to expand our offering to customers,” said Harold Faig, CEO of MedPlast. “Our goal is to build on our core manufacturing and engineering capabilities to provide our customers with a comprehensive portfolio of end-to-end product solutions.”

Vention is a provider of design, engineering and manufacturing services to makers of complex medical devices and components. The company specializes in molded components, and finished device assembly and packaging for the interventional and minimally invasive surgical markets. The company is headquartered in Denver (www.ventionmedical.com).

In a separate transaction, Vention will also be selling its Advanced Technologies Division – a maker of custom specialty components, including heat shrink tubing, extrusions, medical balloons, and specialty tubing – to publicly traded Nordson Corporation (NASDAQ:NDSN) (www.nordson.com).

Water Street and JLL Partners acquired MedPlast in December 2016 from Baird Capital. Baird and CEO Harold Faig formed MedPlast in 2008 when they acquired and combined ATP Engineered Rubber & Plastics Group and K&W Medical Specialties. Add-on acquisitions for MedPlast under Baird ownership included United Plastics Group in February 2012 and UK-based Orthoplastics in September 2013.

Water Street invests from $50 million to $500 million in companies that are active in four health care sectors: medical and diagnostic products and devices; specialty distribution; outsourced health care services; and specialty pharmaceutical products and services.  The firm has particular expertise in corporate divestitures from healthcare companies. Water Street, founded in 2005, has more than $1 billion of capital under management and is based in Chicago (www.waterstreet.com).

JLL Partners invests in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare, building products, financial services, aerospace, and business services.  Since its founding in 1988, the firm has invested approximately $5 billion across seven funds.  JLL Partners is based in New York (www.jllpartners.com).

© 2017 Private Equity Professional | March 31, 2017