Riverside Co. Buys Coeur Inc.

The Riverside Co. has acquired Coeur Inc., a Lebanon, Tenn.-based maker of single-use disposable products for use in diagnostic imaging procedures and other medical applications, from Hammond, Kennedy, Whitney & Company. No pricing terms were disclosed for the deal, which included senior debt from US Bank and mezzanine debt from Babson Capital. Harris Williams & Co. advised Coeur on the sale.



The Riverside Company injected another healthcare company into its portfolio with Coeur, Inc., a multifaceted designer, manufacturer, and assembler of single-use disposable products used in diagnostic imaging procedures and other medical applications worldwide. Coeur, a platform in Riverside’s Capital Appreciation Fund V, is the firm’s 15th platform company healthcare transaction and marks the 26th investment for Riverside in 2008.


Coeur’s offerings include power syringes for use in angiographic, CT and MRI applications; tubing products, including guidewire dispenser coils, extruded medical tubing and tubing used in commercial applications; and a service division that installs, repairs and services power injectors used in direct imaging procedures. In addition to its corporate office in Lebanon, Tennessee, the company has a molding and assembly facility in North Carolina and a medical grade tubing extrusion and assembly plant in Wisconsin as well as several other international warehouses and assembly operations.


“Demand for Coeur’s specialized medical products should continue to grow as the population ages and requires more diagnostic and therapeutic procedures,” said Steve Dyke, Riverside Partner. “Coeur is well positioned to stay ahead of demand due to its relationships with leading OEMs,, commitment to product development and its talented management team. Riverside has extensive experience in the healthcare sector and we look forward to leveraging this experience as we work with management to aggressively pursue add-on opportunities, increase Coeur’s branded product sales and continue its international expansion.”


Coeur’s customers are leading diagnostic imaging and medical device original equipment manufacturers, medical products distributors, hospitals and imaging centers, medical kit and procedure tray manufacturers and select industrial companies. The company holds four U.S. patents, and has 10 pending U.S. patent applications and nine pending international patent applications.


“The Coeur team is looking forward to benefiting from Riverside’s experience and resources to continue to expand the company’s offerings,” said Jay Cude, Coeur President and Chief Executive Officer. “We share core values that have made each of our companies successful, and similar vision for growth that capitalizes on the opportunities in the healthcare marketplace. Coeur’s proven ability to integrate companies, coupled with Riverside’s specialty strength in healthcare, will result in exciting organic and add-on growth scenarios for the company.”


Working with Dyke on this transaction for Riverside were Matt Dailey, Principal, Marty Graul, Associate, and Eric Chueng, Analyst. The transaction was sourced by Jim Butterfield, Principal, Origination. US Bank provided the senior debt while Babson Capital provided the mezzanine financing.


The Riverside Company (riversidecompany.com or riversideeurope.com)

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 valued 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 202 transactions with a total enterprise value of $4.4 billion. Its current portfolio in North America, Europe and Asia numbers 68, with combined annual sales of $3.2 billion, EBITDA of $517 million and more than 14,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 45 days – thanks to its sizeable pool of capital under management (more than $2 billion in nine funds), over 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Six of nine 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.


Coeur, Inc. (www.coeurinc.com)

Coeur designs, manufactures, and assembles a variety of products for the medical and commercial marketplace.  The company offers a full complement of services, including design, molding, tubing extrusion, assembly and packaging of medical devices. Coeur OEM also provides regulatory support including 510(k) submissions and sterilization services to the medical marketplace.