RoundTable Healthcare Partners Completes Portfolio Company Recapitalization
ACI Medical Devices Refinances Higher Cost Subordinated Debt and Pays Substantial Dividend to Shareholders
LAKE FOREST, IL, December 18, 2006 — 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 ACI Medical Devices, Inc. (“ACI Medical”). ACI Medical is a leading specialty medical device manufacturer and contains two business units, Argon Medical Devices, Inc. (“Argon”) and Clinical Innovations, Inc. (“Clinical”). Argon is a manufacturer and supplier of specialty single-use vascular access and pressure monitoring devices utilized in the cardiology, radiology and critical care market segments. Clinical is a designer and manufacturer of single-use medical devices used primarily in the women’s health, urology, and gastroenterology markets. RoundTable initially acquired Argon in November 2003 when it was operating as part of a business unit of Maxxim Medical, Inc. Argon subsequently acquired Clinical Innovations from its owner/founders in May 2005, resulting in the creation of ACI Medical Devices. The recently completed recapitalization was financed entirely with new senior debt and enabled ACI Medical to prepay its higher cost subordinated debt. The recapitalization also funded a substantial dividend to shareholders.
“ACI Medical has successfully integrated the acquisition of Clinical Innovations and capitalized on their growth opportunities,” said Joseph F. Damico, Founding Partner of RoundTable and ACI Medical’s Chairman of the Board. “They have maximized free cash flow and significantly de-leveraged the balance sheet. Following this transaction, overall borrowing costs will be reduced and ACI Medical’s shareholders will realize a portion of the Company’s value creation.”
“ACI Medical’s recapitalization represents an important milestone in our partnership with RoundTable,” said Paul L. Mooney, President and Chief Executive of ACI Medical. “This transaction is a direct reflection of the hard work of the entire ACI team in achieving our growth strategy, driving revenue and earnings growth, and improving our cash flow generation. We look forward to continuing to pursue our long-term strategic objectives and delivering value to our shareholders.”
As part of the recapitalization, ACI Medical amended and expanded its current senior credit facilities led by GE Healthcare Financial Services. Other senior lenders participating in the transaction included LaSalle Bank and National City Bank.
“With the proceeds from this dividend, RoundTable will return a significant portion of our investors’ cost basis in ACI Medical” commented Lester B. Knight, Founding Partner and Managing Partner of RoundTable. “This is the second substantial distribution to RoundTable’s investors in 2006 and provides a very positive close to what has been an active year. In 2006, RoundTable sold one portfolio company, AMI Holdings, for a substantial gain, completed two platform acquisitions, completed four add-on acquisitions and raised a $200 million subordinated debt fund.”
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.
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.