Nautic Partners has completed its previously-announced sale of Medegen, a Scottsdale, Ariz.-based developer of infusion therapy solutions, to CareFusion Corp. (NYSE: CFN). The deal was valued at $225 million in cash. Nautic reports that the deal provides it with a 3.5x cash-on-cash return.
Nautic Partners, LLC, a private equity firm with more than $2.5 billion of capital under management, today announced that it has completed the sale of portfolio company Medegen, LLC to CareFusion Corporation (NYSE: CFN) for $225 million. Inclusive of prior distributions, the transaction will yield a return for Nautic of 3.5x its investment.
Medegen, based in Ontario, CA, is a medical device company that develops, manufactures and markets clinically superior disposable intravenous (IV) therapy products under the Maximus® and KippMed® brands. Medegen also offers contract manufacturing solutions to medical device manufacturers and pharmaceutical companies. Medegen is focused on addressing fundamental healthcare problems with innovative solutions. Its flagship, patent-protected valves are clinically proven to enhance patient outcomes by preventing bloodstream infections (BSI) and catheter occlusions.
“We are fortunate to have partnered with the Medegen management team and are pleased with the Company’s success,” said Chris Crosby, Managing Director of Nautic Partners. “The Company’s compelling value proposition as a clinically driven solution that addresses the critical issue of infection control has resonated with our hospital customers. We credit the Medegen team for identifying the technology, investing in world class facilities and executing on our growth strategy by rapidly expanding our sales force.”
“With Nautic’s active support and financial stewardship, Medegen’s business has grown significantly,” said Charles Stroupe, CEO of Medegen. “During the life of our partnership, the Medegen business has doubled its revenues, established a worldwide branded presence, and maintained an excellent record of quality in a highly regulated environment. This is an outstanding outcome for Medegen’s customers, employees and investors, and we expect continued growth under the stewardship of CareFusion.”
Greenhill & Co. Inc., and Ballard Spahr, LLP, acted as financial advisor and legal counsel to the sellers, respectively.
About Nautic Partners
Founded in 1986, Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. The firm has completed over 100 transactions in partnership with management and delivered successful results to investors for over three decades. Nautic targets equity investments of $25-75 million, representing majority ownership in companies with proven business models, defensible market positions, and strong growth potential. Areas of focus include business services, manufacturing, healthcare and communications. Nautic is currently investing its most recent fund, Nautic Partners VI, a $780 million fund which closed in June 2008. For more information visit www.nautic.com.
About Medegen, Inc.
Medegen is a leading innovator in infusion therapy, focused on helping hospitals drive greater clinical performance for improved patient care. The growing company provides clinically superior medical products and reliable, cost-effective manufacturing services to the medical community through its three operating units: Manufacturing Services, Maximus and KippMed. Manufacturing Services provides cost-effective contract manufacturing solutions to medical device and pharmaceutical companies. KippMed manufactures and markets IV therapy components for the OEM market, drawing from a 25-year history in IV component supply. Maximus develops, manufactures and markets needleless intravenous therapy products for the acute care market. The Maximus line of medical products features patent-protected technologies designed to improve patient outcomes and help health care providers reduce bloodstream infection rates. Medegen is headquartered in Ontario, Calif. and has operations in Tijuana, Mexico. The company is owned by Nautic Partners and management. For more information, visit www.medegen.com.
About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company develops market-leading technologies including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, AVEA® and Pulmonetic Systems ventilation and respiratory products, ChloraPrep® products, MedMined™ services for infection surveillance, NeuroCare neurological monitoring and diagnostic products, V. Mueller® surgical instruments, and an extensive line of products that support interventional medicine. CareFusion employs more than 15,000 people across its global operations. More information may be found at www.carefusion.com.