RoundTable Healthcare Partners Announces Sale of American Medical Instruments Holdings, Inc. to Angiotech Pharmaceuticals, Inc.
LAKE FOREST, IL, February 1, 2006 — RoundTable Healthcare Partners, an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has entered into a definitive agreement to sell one of its portfolio companies, American Medical Instruments Holdings, Inc. (“AMIH”), to Angiotech Pharmaceuticals, Inc. (“Angiotech”) for $785 million in cash. Vancouver-based Angiotech (NASDAQ: ANPI, TSX: ANP) is a specialty pharmaceutical company pioneering the combination of pharmaceutical compounds with medical devices and biomaterials to create innovative treatments for diseases or to dramatically improve surgical outcomes.
Today, AMIH is a leading specialty medical device manufacturer focused on three distinct medical device markets: interventional diagnostics, ophthalmology, and wound closure. It is comprised of seven businesses previously owned and independently operated by The Marmon Group, a privately owned international association of more than one hundred companies. RoundTable acquired a majority interest in these seven businesses in April 2003. The Marmon Group retained a minority interest. After a joint strategic review, RoundTable and The Marmon Group transformed the seven businesses into the new AMIH.
Joseph F. Damico, a Founding Partner of RoundTable and the Chairman of the Board of AMIH said, “AMIH is another excellent example of RoundTable’s model at work. While partnering with The Marmon Group, RoundTable focused on adding value to these businesses through the combination of our operational orientation, healthcare relationships, transaction expertise, and access to senior executive management talent. In the last three years, the AMIH team, led by CEO, Michael Hudson and CFO, Richard Adloff, has driven compounded annual sales and earnings growth of 10% and 20%, respectively. The result has been the creation of a leading manufacturer of specialty, single-use medical devices that delivers consistent revenue and quality earnings growth.”
Henry J. West, Senior Vice-President of Marmon Medical Companies LLC commented, “We kept a minority equity position in AMIH because we believed that RoundTable would be an exceptional partner. They were instrumental in accelerating AMIH’s profitable growth and cash generation. Additionally, their transactional expertise was key to consummating a deal that is good for investors, AMIH employees, and ultimately the customer.”
The sale of AMIH marks the second major portfolio realization for RoundTable’s $400 million Fund I which closed in March 2002. Sabex Holdings Ltd., RoundTable’s second platform investment, was sold in August 2004 to Sandoz for $565 million. Sabex is a leading Canadian manufacturer and distributor of generic injectable pharmaceuticals. Sandoz is the global generics business of Novartis AG. Additional realizations for Fund I investors have come from three portfolio company recapitalizations, including AMIH in December 2004, Excelsior Medical Corporation in July 2005, and MedAssist, Inc. in September 2005.
“The sale of AMIH captures tremendous value for all stakeholders,” said Lester B. Knight, Managing Partner of RoundTable. “Angiotech is an excellent strategic fit with AMIH providing new opportunities for its employees and its businesses. The transaction represents a return in excess of seven times RoundTable’s invested equity capital.”
About RoundTable Healthcare Partners
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 currently manages two equity funds totaling $900 million in capital. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.
About American Medical Instruments Holdings, Inc.
>American Medical Instruments Holdings, Inc. (AMIH) is a specialty medical device manufacturer focused on three medical device markets: interventional diagnostics, ophthalmology, and wound closure. AMIH operates in eleven locations and employs over 1300 people. Seven of the manufacturing companies that comprise AMIH were formerly owned and independently operated by The Marmon Group.
About The Marmon Group
The Marmon Group is 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.
About Angiotech Pharmaceuticals, Inc.
Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI, TSX: ANP), is a specialty pharmaceutical company pioneering the combination of pharmaceutical compounds with medical devices and biomaterials to both create novel solutions for poorly addressed disease states and improve surgical outcomes. More about Angiotech Pharmaceuticals, Inc. can be found at www.angiotech.com.