Cortec Group Buys 180 Medical

Cortec Group has acquired a majority stake in 180 Medical Inc., an Oklahoma City-based distributor of disposable, single-use urologic catheters in home settings. No financial terms were disclosed, except that Madison Capital Funding led the senior note facility.

PRESS RELEASE
Cortec Group (“Cortec”), a New York based private equity firm which invests in middle-market manufacturing, distribution, healthcare and proprietary services businesses, announced that on September 16, 2009 its affiliate, Cortec Group Fund IV, L.P. (“Cortec Fund IV”), acquired a majority interest in 180 Medical, Inc. (“180 Medical” or the “Company”). Terms of the transaction were not disclosed.

Headquartered in Oklahoma City, Oklahoma, 180 Medical is a leading distributor of disposable, single-use (intermittent) urologic catheters to over 10,000 customers in the home setting. The Company stocks a comprehensive inventory of over 500 types of urologic catheters and ships directly to patients to suit the individual needs of its diverse customer base, including those with spinal cord injuries, spina bifida, multiple sclerosis and other conditions causing incontinence.

“Since inception, 180 Medical has generated exceptional growth and profitability, driven by strong industry fundamentals, a superior service offering, and outstanding customer acquisition and retention. The Company’s prospects are even more exciting, given its extensive opportunities to penetrate new and existing geographic markets through an expanded sales and marketing effort. We look forward to working closely with 180 Medical’s outstanding management team to achieve this result,” said Jeffrey A. Lipsitz, a Partner at Cortec. The 180 Medical acquisition represents Cortec Fund IV’s fifth platform investment and Cortec’s eleventh healthcare investment since 2000.

Todd Brown, 180 Medical’s President and Chief Executive Officer, added, “We chose Cortec because of their prior successful medical products investments and experience growing businesses through sales organization development. We are enthusiastic about this new partnership, both as senior managers of the Company and continuing owners in the business.”

The senior loan syndicate was led by Madison Capital Funding LLC.

About 180 Medical
Founded in 2002, 180 Medical is one of America’s fastest growing “nationally accredited” providers of sterile use catheters, urologic and disposable medical supplies. 180 Medical distributes disposable, single-use urologic catheters to customers in the home setting and offers over 500 types of urologic catheters from all leading manufacturers. The Company typically serves long-term customers with chronic medical diagnoses such as spinal cord injuries, spina bifida, multiple sclerosis and other conditions causing incontinence and is networked with and covered by thousands of health plans, insurance networks, state Medicaids and Medicare. The Company acquires new customers through its relationships with an extensive and growing group of urologists that refer patients to 180 Medical because of its superior medical documentation management, product education and patient counseling. For additional information, please visit www.180medical.com.
About Cortec
Cortec acquires high value-added, middle-market manufacturing, service, healthcare and distribution businesses that have achieved leadership positions in their market niches. Cortec Fund IV has more than $410 million of committed capital to acquire platform companies with enterprise values of $30 million to $250 million and smaller follow-on acquisitions. Additional information about Cortec can be found at www.cortecgroup.com.