RoundTable Healthcare Partners Completes Portfolio Company Recapitalization
American Medical Instruments Holdings, Inc. Refinances Higher Cost Subordinated Debt and Pays Substantial Dividend to Shareholders
LAKE FOREST, IL, December 15, 2004 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today the completion of the recapitalization of its portfolio company American Medical Instruments Holdings, Inc. (“AMIH”). The recapitalization consisted solely of new senior debt and enabled AMIH to prepay its higher cost subordinated debt. As a result of the recapitalization, a substantial dividend was paid to AMIH’s shareholders.
RoundTable acquired a majority equity interest in AMIH in April 2003. Prior to RoundTable’s investment, Marmon Medical Companies LLC, a member of The Marmon Group, owned the seven companies that are wholly-owned subsidiaries of AMIH. After RoundTable’s investment, the companies were reorganized into three operating units focused on the interventional diagnostics, ophthalmology, and wound closure markets. The InterV business unit (www.interv.net) manufactures and distributes a variety of single-use disposable products used for interventional diagnostic procedures, including specialty and custom needles, biopsy needles, guidewires and catheters. AMIH’s Surgical Specialties Corporation subsidiary (“SSC”) operates the ophthalmic and wound closure business units (www.surgicalspecialties.com). SSC manufactures disposable ophthalmic products such as surgical blades, ophthalmic sutures and other related products. Wound closure products include a variety of surgical needles and suture material designed for both general and specialty procedures.
“The recapitalization is a testament to the hard work of the executive management at AMIH and their team,” said Joseph F. Damico, Founding Partner of RoundTable, and Chairman of the Board of AMIH. “AMIH has experienced strong growth and has repaid debt faster than expected since our April 2003 investment. This recapitalization lowers AMIH’s overall borrowing costs while allowing all of AMIH’s shareholders to participate in the ongoing value creation at the Company.”
“AMIH’s recapitalization is evidence of the success of our partnership with RoundTable,” said Henry J. West, President of Marmon Medical Companies LLC, Senior Vice President of The Marmon Group, Inc. and a member of AMIH’s Board of Directors. “RoundTable’s operational expertise was instrumental in creating AMIH’s strategic plan and identifying and recruiting AMIH’s executive management team. Marmon is benefiting from our continued minority equity interest in AMIH.”
As part of the recapitalization, AMIH successfully completed new senior credit facilities led by GE Healthcare Financial Services. Other senior lenders that participated in the transaction included LaSalle Bank, National City Bank and Antares Capital, among others.
RoundTable’s investment strategy targets companies in the healthcare industry that fall within the expertise and experience of the firm’s operating and transaction principals.
“The recapitalization at AMIH is further evidence that RoundTable’s investment strategy is working,” commented Lester B. Knight, Founding Partner and Managing Partner of RoundTable. “With the proceeds from this dividend, RoundTable will return almost 50% of our investors’ cost basis in AMIH. This is the second substantial distribution to RoundTable’s investors in 2004 and provides a fitting close to what has been an exceptional year.”
AMIH is one of six RoundTable platform investments. In addition to AMIH, the other companies in the RoundTable portfolio include:
- Argon Medical Devices, Inc., a leading manufacturer and supplier of vascular products.
- MedAssist, Inc., leading provider of outsourced revenue cycle management services to the healthcare industry.
- Excelsior Medical Corporation, a leading manufacturer of pre-filled flush syringes and syringe pump systems.
- Vanguard Medical Concepts, Inc., the nation’s leading medical device reprocessor.
Sabex Holdings Ltd., RoundTable’s second platform investment, was sold earlier this year to Sandoz for $565 million, generating in excess of an eight times return on invested equity capital. Sabex is a leading Canadian manufacturer and distributor of generic injectable pharmaceuticals. Sandoz is the global generics business of Novartis AG.
RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. The partners of RoundTable have significant experience in managing, operating, acquiring and financing multibillion-dollar diversified healthcare 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.
Marmon Medical Companies LLC is a member of The Marmon Group, an international association of more than 100 companies that operate independently within diverse business sectors. With collective revenues in excess of $5 billion, Marmon Group member companies operate more than 300 production facilities in 40 countries and employ about 28,000 people. More information about The Marmon Group can be found at www.marmon.com.