RoundTable News

RoundTable Healthcare Partners and Medline Agree to Acquire Assets of Maxxim Medical


RoundTable Healthcare Partners and Medline Agree to Acquire Assets of Maxxim Medical
RoundTable to Acquire Maxxim’s Vascular Products Business as Independent Platform

LAKE FOREST, IL, October 29, 2003 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the health-care industry, and Medline Industries, Inc. (“Medline”), a leading direct supplier of medical products and equipment to the health-care industry, announced today they have each agreed to acquire certain assets of Maxxim Medical, Inc. (“Maxxim” or “the Company”). Maxxim, a manufacturer, assembler and marketer of specialty medical/surgical products, has been operating under Chapter 11 of the U.S. Bankruptcy Code since February 2003. This transaction resulted from a Section 363 auction held on Monday, October 27 and has received final approval from the U.S. Bankruptcy Court. The transaction is expected to close within 10 business days.

Specifically, RoundTable will acquire Maxxim’s vascular products business, Argon Medical Devices, Inc. (“Argon”), based in Athens, Texas. Argon manufactures, assembles and markets specialty vascular access and pressure-monitoring devices utilized in the cardiology, radiology and critical care market segments. The Argon™ brand of advanced single-use components includes guidewires, needles, sheath introducers, catheters, manifold kits, transducers and control syringes.

“We are very excited about Argon as a new platform investment within the attractive cardiovascular product industry,” said Joseph F. Damico, Founding Partner of RoundTable and new Chairman of Argon. “Argon has established a recognized and valued brand name in the marketplace and a track record of solid and consistent financial performance. As an independent company partnered with RoundTable, we believe Argon’s growth prospects will be enhanced overall. We intend to devote greater resources to the business and to increase focus on our customers.”

Maxxim was purchased in a leveraged buyout transaction in November 1999, a transaction that was largely financed by debt. Despite remaining profitable from an operating perspective, the Company had an excessive amount of debt on its balance sheet, which was the primary reason the Company decided to seek Chapter 11 (Reorganization) relief. Chapter 11 of the Bankruptcy Code has allowed Maxxim to operate in the ordinary course of its business, subject to oversight by the Bankruptcy Court and the applicable provisions of the Bankruptcy Code and Bankruptcy Rules. The joint proposal submitted by RoundTable and Medline was approved on Tuesday, October 28, 2003 under the jurisdiction of the Bankruptcy Court of the State of Delaware.

As part of the same transaction, Medline will acquire Maxxim’s surgical products (custom procedural trays and Boundary® drapes and gowns) and medical products (examination and surgical gloves) businesses.

RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the health-care industry. The partners of RoundTable have significant experience in managing, operating, acquiring and financing multibillion-dollar diversified health-care companies. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.

Medline Industries, Inc., Mundelein, IL, was founded in 1966 but traces its roots in health care back to 1910 when it was a garment manufacturer. Medline is a leading direct supplier of medical products and equipment to the health-care industry. Based on sales of over $1.45 billion in 2002, Medline is the largest privately held national manufacturer and distributor of medical supplies in the United States. The company has more than 700 dedicated sales representatives nationwide to support its broad product line and cost management services. Medline distributes over 100,000 products to hospitals, extended care facilities, surgery centers, hospital laundries, home care dealers and agencies and other alternate site markets from its 27 distribution centers in the U.S. With six manufacturing facilities in North America, Medline manufactures many of the products it sells. More information about Medline can be found at www.medline.com.

Contacts
Betty Rasbid
847.739.3200