RoundTable Healthcare Partners Makes Investment in Vesta, Inc.
Partnership Provides RoundTable New Platform in Silicone-based Medical Products
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 it has acquired a majority interest in Vesta, Inc. (“Vesta”). Vesta, based outside Milwaukee, Wisconsin, is a leading supplier of silicone medical products to the OEM medical device industry. The Vesta management team, led by CEO Phil Estes, as well as owner-founders Chuck Heide and Glenn Hubbard, will retain a substantial ownership stake in the company and will continue to lead the management of the organization. Financial terms of the transaction were not disclosed.
“Vesta is an exciting new platform for RoundTable to add to our growing list of medical-surgical companies,” said Joseph F. Damico, a Founding Partner of RoundTable and new Chairman of Vesta. “The company manufactures an attractive portfolio of silicone medical devices and accessories and provides a strong platform for expansion. We have been very impressed with Vesta’s management team and employees; they have an outstanding reputation for quality and the execution of superior results. We look forward to working with them.”
“RoundTable is an ideal partner for Vesta,” said Mr. Estes. “Their extensive background in the medical device industry and their strategic insight will be extremely valuable to Vesta as we continue to execute our growth strategy. We believe that RoundTable will be able to help accelerate Vesta’s growth through their operational, strategic, and marketing experience, as well as through their strong relationships with key decision-makers in the healthcare industry.”
As part of the transaction, and to finance further growth opportunities for Vesta, 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 LaSalle Bank and National City Bank. Vesta’s senior subordinated notes were acquired by RoundTable Capital Partners (“Capital Fund”), RoundTable’s captive subordinated debt fund. The Capital Fund 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. Vesta is RoundTable’s eleventh platform investment and the fourth from RoundTable’s $500 million Fund II. Vesta represents the third investment from the Capital Fund.
RoundTable’s other Fund II platform investments include Aspen Surgical Products Holding, Inc., Bioniche Pharma Holdings, Limited and CorePharma LLC. Additionally, RoundTable’s Fund I investments have included: Avalign Technologies, Inc., ACI Medical Devices, Inc., Ascent Healthcare Solutions, Exclesior Medical Corporation, MedAssist, Inc., AMI Medical Devices, Inc., and Sabex Holdings, Ltd.
“We are very pleased to add Vesta to our portfolio, and make our fourth investment from Fund II and our third investment from the Capital Fund,” said Lester B. Knight, a Founding Partner of RoundTable. “Vesta 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 in partnership with Vesta’s management to leverage our operational, transactional, and industry expertise to maximize the company’s growth and profitability.”
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 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.