Resilience Capital Partners has acquired three medical device service and manufacturing businesses: the Multi Vendor Service unit of Bayer’s Radiology, Westsco Inc and MD MedTech LLC. No financial terms were disclosed. Resilience will consolidate MVS, Wetsco and MDMT under a new holding company Innovatus Imaging Corporation.
CLEVELAND, September 6, 2017 – The private equity firm Resilience Capital Partners announced today that a fund managed by the firm has acquired three medical device service and manufacturing units. The move establishes Resilience Capital Partners as one of the leading providers in this growing segment of the healthcare industry, which is relying on these third-party device repair companies to control costs. The units acquired by Resilience Capital Partners are the Multi Vendor Service (MVS) unit of Bayer’s Radiology business; Wetsco, Inc.; and MD MedTech, LLC (MDMT).
All three businesses – MVS, Wetsco and MDMT – are being combined and will operate under a new holding company, Innovatus Imaging Corporation.
The fund also has reached a definitive agreement to acquire the European operations of MVS, based in Maastricht, the Netherlands. This transaction is expected to close by March 31, 2018. In the interim, Innovatus Imaging will continue to serve European customers through a transitional service agreement with Bayer.
“The creation of Innovatus Imaging through the acquisitions of MVS, Wetsco and MDMT gives us the scale and synergies to succeed in a market that is projected to grow by double-digit figures over the next five years as healthcare providers are asked to do more with less and extend the life of costly medical devices through repair and servicing,” said Steven H. Rosen, Co-CEO of Resilience Capital Partners.
Ensuring continuity, Innovatus Imaging will draw its leaders from the senior ranks of the acquired companies.
· Dennis Wulf, former president of Wetsco and chief executive officer of MDMT, will serve as chief executive officer (CEO) of Innovatus Imaging and is a co-investor in the new company.
· Bill Kollitz, formerly general manager of MVS, will serve as president and chief operating officer (COO) of Innovatus Imaging.
· Michael LaBree, co-founder, chief operating officer and vice president, engineering of MDMT, will serve as chief technology officer (CTO) of Innovatus Imaging.
“All three of these businesses have enjoyed strategic partnerships and customer relationships over the years, and so it is a natural fit to combine them under a single company umbrella,” said Bassem Mansour, Co-CEO of Resilience Capital Partners. “This combination of talent and resources will enhance performance in high-growth areas, helping increase the new company’s offerings in medical equipment repair while enabling it to develop groundbreaking medical imaging products.”
Pittsburgh-based MVS previously was part of Bayer’s Radiology business. It is a market leader in the third-party service-repair business for radiology devices, including ultrasound probes, magnetic resonance imaging (MR) Coils and computed radiography readers, dry film printers and the sale of digital radiography detectors. MVS has been a frequent customer of MDMT, purchasing its ultrasound probe replacement components.
Tulsa-based Wetsco is a leading third-party ultrasound probe repair provider that has an exclusive alliance with MVS since 2008, specializing in repair and capability development on standard and 3D/4D probes.
Based near Denver, MDMT designs and manufactures specialty medical ultrasound products for the OEM, third-party repair and research markets.
“The combination of MVS, Wetsco and MDMT within Innovatus Imaging will ensure our ability to support customers and the imaging community. It also will enable us to expand our service strategy and new product development,” said Wulf.
Resilience Capital Partners, which manages in excess of $625 million, has now completed 12 transactions over the past 12 months and 18 transactions in the past two years. Funding for the Innovatus Imaging transaction comes from Resilience Fund IV, which closed in October 2015 with $350 million in investable capital, and from co-investors including Pittsburgh-based North Park Capital Partners.
The transactions involving MVS (U.S.), Wetsco and MDMT closed on August 31, 2017. Financial terms of the transactions are not being disclosed.
About Resilience Capital Partners
Headquartered in Cleveland, Ohio, Resilience invests in niche-oriented manufacturing, value-added distribution and business service companies with sustainable market positions and a clear path to cash flow improvement. Resilience targets platform businesses with $25 million to $250 million in revenues across a broad range of industries where it can improve a company’s operations, competitive positioning and profitability. Resilience manages in excess of $625 million for its global investor base that includes pension funds, insurance companies, foundations and endowments, fund of funds and family offices. For more information, please visit www.resiliencecapital.com.
About North Park Capital Partners
North Park is a Pittsburgh-based family office that invests in companies headquartered in the Upper Midwest with enterprise values of $3 million to $30 million.
About Multi Vendor Service (MVS)
MVS is located in Pittsburgh, Pennsylvania and is a market leader in third-party medical device service, specializing in the repair of MR Coils, CR systems, dry film printers and transesophageal echocardiography (TEE) probes. In addition to multivendor service, MVS also distributes and installs digital radiography upgrade solutions. MVS maintains an ISO 13485 certification. Previously, MVS was part of Medrad, which was known for its contrast injectors and which designed and manufactured MR coils from 1986 until 2010. Multi Vendor Service was established as a business unit of Medrad in 1996 after utilizing the design and manufacturing expertise to develop repair capabilities on non-Medrad branded MR coils. Medrad became a Bayer AG affiliate in 2006 and was integrated into Bayer’s radiology business in 2012.
About Wetsco, Inc.
Wetsco, Inc. is a Tulsa, Oklahoma-based third-party ultrasound probe repair provider. Wetsco has been in business for over 15 years and has many proprietary repair techniques. Following the establishment of the exclusive alliance with MVS in 2008, Wetsco began to specialize in repair and capability development on standard and 3D/4D probes. Currently, Wetsco holds ISO 9001 and ISO 13485 certifications.
About MD MedTech
Located near Denver, Colorado, MD MedTech (MDMT) designs and manufactures specialty medical ultrasound products for the OEM, third-party repair and research markets. MDMT provides customer solutions and capabilities spanning the range from contract manufacturing to turnkey product development for almost all medical ultrasound-imaging needs. MDMT is ISO 13845 certified and is registered with the FDA.