RoundTable Healthcare Partners Acquires Aspen Surgical Products, Inc.
Acquisition Provides RoundTable New Platform in Surgical and Operating Room Products
LAKE FOREST, IL, September 6, 2006 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has acquired a majority interest in Aspen Surgical Products, Inc. (“Aspen”). Aspen, based outside Grand Rapids, Michigan, is a leading manufacturer and marketer of disposable medical products for surgical and general healthcare applications. Daniel J. Bowen, the owner/founder and current President of Aspen, will retain a substantial ownership stake in the company and will continue to help lead the management of the organization. Financial terms of the transaction were not disclosed.
“We are very excited to partner with Aspen,” said Joseph F. Damico, a Founding Partner of RoundTable and new Chairman of Aspen. “Aspen has developed an attractive portfolio of disposable surgical products and accessories that provides a platform for expansion in the operating room. We have been very impressed with Aspen’s management team and employees; they have an excellent reputation for quality, customer service and superior results. We look forward to working with them.”
“RoundTable is an ideal partner for Aspen,” said Mr. Bowen. “We believe that RoundTable will be able to help accelerate Aspen’s growth through their operational, strategic, and marketing experience, as well as through their strong relationships with key decision-makers in the healthcare industry. This partnership is also very exciting for me personally, as I will have the opportunity to work with members of the RoundTable team who are former colleagues.”
As part of the transaction, and to finance further growth opportunities for Aspen, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of senior subordinated notes. The senior credit facilities were led by GE Commercial Finance Healthcare Financial Services, and included National City Bank. Aspen’s senior subordinated notes were acquired by RoundTable Capital Partners (“Capital Fund”), RoundTable’s captive subordinated debt fund. The Capital Fund, which closed in July 2006 and raised $200 million, is a dedicated subordinated debt fund that makes fixed rate subordinated debt investments alongside the equity investments of RoundTable’s equity funds.
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. Aspen is RoundTable’s tenth platform investment and the third from RoundTable’s $500 million Fund II. Aspen represents the first investment from the Capital Fund.
RoundTable’s Fund II platform investments include Bioniche Pharma Holdings, Limited and CorePharma LLC. Additionally, RoundTable’s Fund I investments have included: ACI Medical Devices, Inc., Ascent Healthcare Solutions, Exclesior Medical Corporation, MedAssist, Inc., Instrumed International, AMI Medical Devices, Inc., and Sabex Holdings, Ltd.
“We are very pleased to make our first investment from the Capital Fund and continue our momentum with the third investment from Fund II,” said Lester B. Knight, a Founding Partner of RoundTable. “The Aspen investment is another example of RoundTable’s core strategy of partnering with strong owner-founder companies in one of our targeted healthcare sectors. We will now work to leverage our operational, transactional, and industry expertise, in partnership with Aspen’s management, to maximize the company’s growth and profitability.”
RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs, and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.1 billion in capital, including two equity funds totaling $900 million and a subordinated debt fund of $200 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.