Cortec Group has acquired Aspen Medical Products, a designer and manufacturer of upper and lower spinal orthopedic bracing products.
Aspen’s products are primarily used in the acute care market by patients in need of short-term treatment from severe injuries, have urgent medical conditions, and/or are recovering from surgery.
Separate from acute care applications, the company’s products are also widely used for stabilization, pain therapy and to support daily living activities. Aspen, led by founder and CEO Dan Williamson, is headquartered in Irvine, CA (www.aspenmp.com).
“We sought an engaged partner, capable of helping Aspen with strategic planning, infrastructure development, and growth initiatives including expanded product adoption, international expansion, and acquisitions,” said Mr. Williamson, who will continue to lead the business under Cortec ownership. “From our first meeting together, the Cortec team impressed us with their appreciation for our business, industry knowledge, success working with many other entrepreneur- and family-owned businesses, and highly relevant operational expertise, which led us to select them as our teammate going forward.”
“Aspen is a great fit for Cortec based on our significant experience investing in medical products companies and teaming with entrepreneurs,” said Jeffrey Lipsitz, a managing partner at Cortec. “The company’s strong reputation among healthcare providers as an industry-leading spinal bracing brand and impressive growth are the clear results of a longstanding focus on product innovation and dedication to patient care.”
Cortec invests in companies with revenues of $40 million to $300 million and EBITDA of $7 million to $35 million. Sectors of interest include healthcare products and services, business and consumer products, value-added distribution and specialty services. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).
The buy of Aspen is the sixth platform investment for Cortec Group Fund VI LP which closed in May 2015 with $1.1 billion in capital commitments.
“Dan Williamson and Geof Garth (senior vice president of product development) have built a great company over the last 25 years,” said Jeff Shannon, a partner at Cortec. “We are excited to partner with the entire Aspen team to support the continued expansion of the company’s product offering, further penetration of US, European and Asian markets, and the pursuit of new market segments, including pain management as an alternative to surgery and prescription drugs.”
Capstone Headwaters was the financial advisor to Aspen.
Debt financing to support the transaction was provided by Antares, NXT Capital, Golub Capital, and First Eagle Private Credit.
© 2019 Private Equity Professional | June 24, 2019
