RoundTable News

RoundTable Healthcare Partners Completes Portfolio Company Add-On Acquisition for Avalign Technologies, Inc.


Acquisition to Broaden the Product Offering of Avalign Technologies, Inc.

LAKE FOREST, IL, May 1, 2009 — 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”), a leading full-service supplier of instruments, implants, and delivery systems to the OEM medical device industry, has completed the acquisition of NGInstruments, Inc. (“NGInstruments”).  NGInstruments is a family-owned manufacturer of high quality surgical cutting tools for the medical industry, specializing in drills, taps, and reamers.  The financial terms of the transaction and RoundTable’s investment were not disclosed.

“NGInstruments is a strategic and complementary acquisition for Avalign,” said Joseph F. Damico, a Founding Partner of RoundTable and Chairman of the Board of Avalign.  “NGInstruments adds an important product line through their market-leading expertise in precision grinding that bolsters Avalign’s offering to our orthopaedics customers in the reconstruction, trauma, and spine markets. This further differentiates the company as a full-service supplier to medical device OEMs.”

“We are excited about the combination of Avalign and NGInstruments,” said Forrest Whittaker, Chief Executive Officer of Avalign.  “This combination is positive for the customers and employees of both companies, as we continue to expand our product portfolio, manufacturing capabilities, and scale. We look forward to working together with NGInstruments’ accomplished and talented management team to expand our service to our customers and to realize our growth objectives.  We are also pleased to have the support of RoundTable to complete this acquisition and appreciate their continued commitment to invest in Avalign’s growth and future.”

Tony Nicholas, Co-Founder and President of NGInstruments, added, “Avalign and RoundTable are ideal partners for NGInstruments.  The combination of the businesses will create a stronger organization with deep, broad-based customer relationships, providing best-in-class service. The partnership with Avalign and RoundTable will also help us grow by providing access to new customers and markets, and the resources to support our growth initiatives.”

As part of the transaction, RoundTable successfully facilitated an amendment to Avalign’s senior credit facilities, as well as a private placement of subordinated notes.  The senior credit facilities were led by The PrivateBank and Trust Company with GE Capital, Healthcare Financial Services participating in the credit.  Avalign’s subordinated notes were purchased by RoundTable Capital Partners, RoundTable’s $200 million captive subordinated debt fund.  RoundTable and certain shareholders of Avalign and NGInstruments made an equity investment in Avalign as part of the transaction.

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.

About Avalign Technologies, Inc.

Avalign Technologies, Inc. is a leading provider of outsourced services to medical device OEMs.   Avalign provides its customers with a full-service offering including instruments, implants, and delivery systems.  Avalign currently operates through four divisions, Instrumed International, Inc., Nemcomed, Inc., Advantis Medical, Inc., and NGInstruments, Inc.  Instrumed is a premium-quality surgical instrument manufacturing and single-source sourcing expert.  Nemcomed provides Avalign with precision machining capabilities and the ability to design and manufacture medical instruments and implants.  Advantis is a leading orthopaedic case/tray system manufacturer providing Avalign’s customers best-in-class delivery system capabilities.  NGInstruments manufactures high quality surgical cutting tools, specializing in drills, taps, and reamers. More information about Avalign can be found atwww.avaligntech.com.

Media Contact: Betty Rasbid, 847/739-3200