Riverside Acquires World-Class Medical Device Supplier March 31, 2008
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Firm Completes Fourth European Transaction in Six Weeks
(March 31, 2008) – The Riverside Company has closed its ninth acquisition of 2008, and fourth in Europe in just six weeks, with the recent purchase of Summit Medical Limited, a leading global supplier of single-use medical devices. Summit Medical was purchased from Graphite Capital, a UK mid-market private equity firm, for £36 million. Summit Medical distributes disposable orthopedic and infection-control products that deliver clinical and economic benefits to patients and healthcare providers.
“Led by a strong and experienced management team, Summit Medical has a successful track record of organic and acquisition growth. The company is an industry leader with a first-class proprietary product range, and operates in an attractive and growing niche market,” said Radim Stach, Riverside Partner. “Riverside will help Summit grow by contributing our deep experience as an investor in 13 healthcare companies, as well as by seeking add-on acquisitions to augment the parent company.”
“In addition to the increasing needs of an aging population, medical advances in orthopedic procedures reach all age groups, which will fuel the demand for our products,” said Frank Collins, Summit Medical CEO. “With Riverside’s support and focus on growth, we expect that our brand will become stronger and our geographic reach will be deeper.”
Founded in 1984, Summit Medical is headquartered in Gloucestershire, England and operates three facilities in the United Kingdom. The company’s four product lines include cement-mixing devices for use in orthopedic procedures such as knee and hip replacements; autologous blood transfusion and wound-drainage devices used in post-operative care; disposable anti-bacterial hospital privacy curtains that address the growing need for infection control in hospitals; and specialty implants used in knee and hip replacements.
Summit Medical differentiates itself through product quality, design and functionality. The company owns the intellectual rights to the unique features of its products, with 10 United Kingdom and worldwide patents, three patents currently pending and 15 registered trademarks. Products are manufactured by a select group of sub-contractors who understand and meet the required standards of the medical-device industry. Sales in the United Kingdom are made through a direct sales force to private and National Health Service hospitals, while export sales are made through experienced and committed distributors in over 30 countries.
Working with Stach from Riverside were Vladimír Pavala, Vice President and Luděk Palata, Vice President. Karsten Langer, Riverside Partner, Origination, sourced the transaction, and equity was provided by Riverside Europe Fund III. Debt financing was provided by Lloyds TSB Corporate Markets. Clearwater Corporate Finance LLP represented the seller.
The Riverside Company
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those with enterprise values of up to $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 185 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S., Europe and Asia numbers 62, with combined annual sales of $3 billion, EBITDA of $428 million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 30 days – thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 150 professionals in 17 offices (Amsterdam, Atlanta, Budapest, Brussels, Chicago, Cleveland, Dallas, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Five of seven of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. Please visit www.riversidecompany.com and www.riversideeurope.com for more information.
Summit Medical Limited
Summit Medical is a leading supplier of single use medical devices to the global market. The company’s products focus on orthopedics and infection control and include cement mixing devices, autologous blood transfusion and wound drainage devices, disposable anti-bacterial hospital privacy curtains and specialist implants used in knee and hip replacements. Innovation and quality are hallmarks of Summit Medical’s products and the company is dedicated to providing economic and clinical benefits to patients and healthcare providers. Please visit www.summit-medical.co.uk for more information.