RoundTable Healthcare Partners Leads Portfolio Company Add-On Acquisition
Avalign Technologies, Inc. Completes Acquisition of Nemcomed, Inc.
LAKE FOREST, IL, August 1, 2007 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that its portfolio company Avalign Technologies, Inc. (“Avalign”) completed the acquisition of Nemcomed, Inc. (“Nemcomed”). Nemcomed is a leading designer and manufacturer of precision machined medical implants and instrumentation for orthopedic specialties. Avalign is RoundTable’s platform investment in the medical device outsourcing market and Nemcomed is the third business acquired to create the platform. The other two businesses are Instrumed International, which specializes in the manufacturing and sourcing of premium quality surgical instruments, and Advantis Medical, a leading designer and manufacturer of medical case / tray organizing systems for surgical instruments, implants and medical devices. The financial terms of the transaction and RoundTable’s investment were not disclosed.
“The Nemcomed acquisition presented a highly strategic opportunity for Avalign,” said Joseph F. Damico, a Founding Partner of RoundTable and Chairman of Avalign. “Nemcomed provides Avalign with first class precision machining capabilities, a strong team of design engineers and a proprietary line of instrumentation. The acquisition positions Avalign to be a leading full-service provider of outsourced services to medical device OEMs.”
“The acquisition of Nemcomed is another step towards achieving our strategic objectives,” said Forrest Whittaker, Chief Executive Officer of Avalign. “The three businesses within the Avalign platform have complementary product offerings, manufacturing capabilities and customers. In the near-term Avalign will focus on providing its customers with more products and services while maintaining best-in-class customer service and responsiveness.”
“We are excited to have the opportunity to work with RoundTable and Avalign,” said Greg Stalcup, President of Nemcomed. “The combination of the businesses will create a stronger organization that is better positioned to serve our customers. The partnership with Avalign and RoundTable will help provide access to new customers and markets and ensures that we have the capital to fund our growth initiatives.”
As part of the transaction and to finance further growth opportunities for Avalign, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of subordinated notes. The senior credit facilities were led by LaSalle Bank with GE Healthcare Financial Services participating in the credit. Avalign’s senior subordinated notes were purchased by RoundTable Capital Partners, RoundTable’s $200 million captive 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.