RoundTable Healthcare Partners Makes Additional Equity Investment in Argon Medical Devices, Inc.
Completes Acquisition of Clinical Innovations, Inc.
LAKE FOREST, IL, May 2, 2005 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has made an incremental equity investment in its portfolio company Argon Medical Devices, Inc. (“Argon”) to fund Argon’s strategic acquisition of Clinical Innovations, Inc. (“Clinical Innovations”). Clinical Innovations is a leading designer and manufacturer of single-use medical devices used primarily in the women’s health, urology, and gastroenterology markets. Argon is a leading manufacturer and supplier of specialty single-use vascular access and pressure monitoring devices utilized in the cardiology, radiology and critical care market segments. Argon and Clinical Innovations will be combined to form a new specialty medical device manufacturer, ACI Medical Devices, Inc. (“ACI Medical”). The financial terms of the transaction and RoundTable’s incremental equity investment were not disclosed.
“Clinical Innovations is a strategically important acquisition for Argon,” said Paul L. Mooney, President and Chief Executive of Argon and the newly formed ACI Medical. “The products sold by Clinical Innovations and Argon are complementary from a product development, design and manufacturing standpoint, although they serve diverse markets. The combined ACI Medical will seek to draw from the best practices of the two organizations.”
RoundTable initially acquired Argon in November 2003 when it was operating as part of a business unit of Maxxim Medical, Inc. Mr. Mooney added, “Since their initial investment, RoundTable has been instrumental in supporting Argon’s strategic plans and growth strategy. They were responsible for sourcing and facilitating this acquisition, as well as advising Argon on the transaction.”
“The executive management team at Argon has made tremendous strides in repositioning the company as a standalone growth platform,” said Joseph F. Damico, a Founding Partner of RoundTable and Chairman of ACI Medical. “This transaction is an important milestone in our efforts to build a world-class specialty medical device manufacturer.”
As part of the transaction, and to finance further growth opportunities for ACI Medical, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of subordinated notes. The senior credit facilities were led by GE Commercial Finance Healthcare Financial Services, and included LaSalle Bank and National City Bank. ACI Medical’s subordinated notes were issued to private investors that are limited partners of RoundTable’s equity fund and that had previously helped finance RoundTable’s initial acquisition of Argon.
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. RoundTable currently manages two equity funds totaling $900 million in capital. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.
Argon Medical Devices, Inc., Athens, TX, is a leading manufacturer and supplier of specialty single-use vascular-access and pressure monitoring devices utilized in the cardiology, radiology and critical care market segments. Products, which are sold individually and as part of custom procedure trays, include the Jawz™ biopsy forcep, Argo-Bag™ fluid control system, One Step™ introducer and ArgoGuide™ hydrophilic guidewire. Argon supplies hospital cardiac catheterization laboratories, interventional radiology laboratories and critical care units and maintains over 2,000 direct hospital accounts. Argon’s other customers include medical supply distributors, custom procedure kit packers and OEM customers. More information can be found at Argon’s website: www.argonmedical.com.
Clinical Innovations, Inc., Murray, UT, is a leading designer and manufacturer of single-use medical devices used primarily in the women’s health, urology and gastroenterology markets. Clinical Innovations’ products, such as the Kiwi® vacuum assisted fetal delivery device and the Koala® sensor-tip intrauterine pressure monitoring catheter, are highly differentiated, patent-protected devices. Clinical Innovations has a strong track record of product development dating to its founding in 1993 by the three members of its current senior management team. More information can be found at Clinical Innovations’ website: www.clinicalinnovations.com.
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