American Medical Instruments

Lake Forest, Illinois

When RoundTable partnered with American Medical Instruments in 2003, the specialty medical device manufacturer was composed of seven independently operated companies within the Marmon Group, a family-owned conglomerate. The seven companies participated in the same markets, sometimes in competitive situations, with no management structure to operate them as one group. At the time of acquisition, the companies were collectively stable but had not grown for the past three years.

Results achieved with RoundTable’s value-added expertise:

• More than a 7x increase in equity value
  RoundTable originally acquired a 65% stake in AMIH, with the Marmon Group retaining the other 35%. In March 2006, RoundTable completed the sale of AMIH to Angiotech Pharmaceuticals, Inc. for $785 million, resulting in a 7.1x increase in equity value. 
   
• Integration of seven independent entities and a focus on operational excellence
  RoundTable worked with the Marmon Group to create a strategic integration plan for the seven independently operated businesses. The businesses were reorganized under one holding company and coordinated to form three operating platforms:
  • Interventional diagnostics
  • Ophthalmology
  • Wound closure
  This allowed the company to build the industry's second largest interventional radiology sales force, achieve a significant reduction in manufacturing costs, and create a substantial basis point improvement in EBITDA margin. 
   
• Creation of significant value through strategic investments
  New license agreements generated significant incremental sales, and an incremental R&D investment yielded a meaningful asset sale and royalty agreement. 
   
• Identification and recruitment of complementary management
  RoundTable recruited senior executives including the president/CEO, CFO, Vice President of Manufacturing, Vice President of Finance, Controller, and Plant Manager. 
   
• Support of corporate finance initiatives
  RoundTable led an add-on acquisition, a divestiture, and a recapitalization. RoundTable also served as transaction coordinator and advisor on the sale of AMIH to Angiotech Pharmaceuticals, Inc.