Cortec Group has acquired a majority interest in Katena Products Inc., a Denville, N.J.-based maker of micro instruments for ophthalmic surgeries of the anterior segment of the eye. No financial terms were disclosed. Investment bank The Walden Group represented Katena Products.
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 30, 2009 its affiliate, Cortec Group Fund IV, L.P. (“Cortec Fund IV”), in partnership with management, acquired a majority interest in Katena Products, Inc. (“Katena” or the “Company”). Terms of the transaction were not disclosed.
Katena, based in Denville, NJ, is a leading producer and supplier of precision manufactured micro instruments for ophthalmic surgeries of the anterior segment of the eye (i.e., cataracts, corneal transplants, LASIK, glaucoma). The Company’s products are sold globally to hospitals, ambulatory surgery centers and individual ophthalmic surgeons, under the Katena™ brand name.
Scott Schafler, President of Cortec, stated: “Over more than three decades, Katena has developed an outstanding worldwide reputation for providing the highest quality instruments available for ophthalmic surgery. We have been impressed with Katena’s innovative instrument designs, close relationships with leading ophthalmic surgeons and uncompromising commitment to quality and service, which in turn have contributed to new techniques in the field of ophthalmology.”
Jonathan A. Stein, a Senior Managing Director at Cortec, added: “We are excited to be partnering with Katena’s management in helping to accelerate the Company’s growth – developing new products, expanding sales efforts and, over time, entering new markets.” The Katena acquisition represents Cortec Fund IV’s sixth platform investment and Cortec’s twelfth healthcare investment since 2000.
Kate Tiedemann, Katena’s founder and Chief Executive Officer, added “Joining with Cortec will enable Katena to develop new quality products and expand our line to satisfy the needs of ophthalmic surgeons in a growing market, while offering even better customer service. Our entire team is enthusiastic about the resources that Cortec brings to Katena to assist our expansion. We had a choice of partners, but felt that Cortec’s background and business experience was the best fit.”
About Katena Products, Inc.
Katena was founded more than 30 years ago with the mission of providing the finest ophthalmic surgical instruments. Katena offers its products to over 7,000 customers in the United States and, through a global network of distributors, to customers in more than 100 countries around the world. The Company’s broad portfolio of over 1,400 reusable instruments and single-use disposable devices are specified by surgeons for their quality, reliability, durability, features and special “feel.” In addition to the Katena™ brand of reusable instruments, the Company maintains an exclusive marketing and distribution agreement for certain products with Barron Precision Instruments, a world-wide leader in the manufacture of single-use, disposable corneal transplant trephine systems. For additional information, please visit www.katena.com.
About Cortec Group
Cortec acquires high value-added, middle-market specialty 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.
About The Walden Group
The Walden Group (Tarrytown, NY), a specialized healthcare investment banking firm, represented Katena and facilitated the transaction. For additional information, please visit www.waldenmed.com.