RoundTable Healthcare Partners Completes Acquisition of Advantis Medical, Inc.
Advantis Medical, Inc. to join Instrumed International, Inc. forming a new medical device outsourcing platform, Avalign Technologies, Inc.
LAKE FOREST, IL, January 11, 2007 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has completed the acquisition of Advantis Medical, Inc. (“Advantis”). Advantis is a leading designer and manufacturer of medical case / tray organizing systems for surgical instruments, implants and medical devices. Advantis will be combined with Instrumed International, Inc. (“Instrumed”). RoundTable acquired a majority interest in Instrumed in October 2005. Instrumed specializes in the manufacturing and sourcing of premium quality surgical instruments. The two companies will form a new medical device outsourcing platform operating under the name Avalign Technologies, Inc. (“Avalign”). The financial terms of the transaction and RoundTable’s investment were not disclosed.
“We are excited about the combination of Advantis and Instrumed to form Avalign,” said Joseph F. Damico, a Founding Partner of RoundTable and new Chairman of Avalign. “We are impressed with Advantis’ design and engineering capabilities and its strong commitment to quality and customer service. These core competencies, combined with Instrumed’s expertise in manufacturing and sourcing precision surgical instruments, will position Avalign as a leading full-service provider of outsourced services to medical device OEM customers.”
“RoundTable and Instrumed are the perfect partners for Advantis,” said Jim Spencer, President of Advantis. “The two businesses offer complementary services and will have numerous synergies. In addition, RoundTable’s partnership approach presented a unique opportunity to enter into a strategic transaction while at the same time allowing me to retain a significant role and investment in the business going forward. I look forward to working to ensure our new company’s success.”
With the formation of Avalign, RoundTable also announced that Forrest R. Whittaker has joined as Avalign’s new Chief Executive Officer. Forrest has over 30 years of healthcare experience, previously serving as the President and Chief Operating Officer of Teleflex Medical and in various senior executive roles at Tyco Healthcare, Baxter Healthcare and American Hospital Supply.
Mr. Damico commented, “Forrest will bring a wealth of experience and insight to Avalign and its two businesses. Both Advantis and Instrumed have experienced significant growth over the past few years and we believe this is the perfect opportunity to complement their current management teams with additional executive resources. Together, they will focus on continuing these strong growth trends while exploring new opportunities in the medical device outsourcing market.”
“I am pleased about the opportunity to work with RoundTable, Jim Spencer and Berndt Fetzer at Instrumed,” said Mr. Whittaker. “I am excited about the opportunities at Avalign and will focus my time to ensure that our existing customers continue to receive outstanding service, while at the same time creating a world-class medical device outsourcing organization.”
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 and GE Healthcare Financial Services also participated in the transaction. 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.
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