RoundTable Healthcare Partners, a healthcare-focused buyout firm based in based in Lakeforest, Ill., has agreed to sell portfolio company Ascent Healthcare, a medical device company, to Stryker Corporation for $525 million in cash. Prior to closing, Ascent will distribute $35 million of cash from its balance sheet to its shareholders, taking the total proceeds from the sale to approximately $560 million.
– RoundTable Healthcare Partners, an operating-oriented private equity firm focused exclusively on the health-care industry, announced today that it has entered into a definitive agreement to sell one of its portfolio companies, Ascent Healthcare Solutions (“Ascent”) to Stryker Corporation (“Stryker”), one of the world’s leading medical technology companies, for $525 million in cash. Prior to closing, Ascent will distribute $35 million of cash from its balance sheet to its shareholders, taking the total proceeds from the sale to approximately $560 million. The closing is conditional on regulatory approval and other customary closing conditions.
Ascent is the leading independent third-party reprocessor of single-use medical devices in the healthcare industry. It was created through a merger of Vanguard Medical Concepts, Inc. (“Vanguard”) and Alliance Medical Corporation in December 2005. RoundTable acquired a majority interest in Vanguard in September 2001.
“RoundTable’s initial investment in Vanguard was driven by our belief that the reprocessing of medical devices would produce significant cost savings for hospitals and divert thousands of pounds of medical waste from landfills,” said Joseph F. Damico, a Founding Partner of RoundTable and the Chairman of the Board of Ascent. “John Grotting and the management team have taken this concept and become the market leaders, growing revenue and profitability by expanding their product offerings and increasing their customer base to over 1800 hospitals and numerous Group Purchasing Organizations throughout North America.”
“RoundTable has been an exceptional partner,” said John Grotting, CEO of Ascent. “Their industry relationships and operating expertise have helped us to strategically position our business and accelerate our sales and profitability. Their transaction expertise was instrumental in consummating our new partnership with Stryker. This new relationship will be good for both our customers and our employees.”
“The sale of Ascent is an example of RoundTable’s strategy to use our unique operational orientation and transaction expertise and partner with owner/founders to create value for their businesses,” said Lester B. Knight, Managing Partner of RoundTable. “This transaction was exceptional for all our stakeholders. For our investors, it represents a return of over eight times invested capital.”
About RoundTable Healthcare Partners
RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the health-care industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.1 billion in capital, including two equity funds totaling $900 million and a subordinated debt fund of $200 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.