Inverness Graham Investments and Wedbush Capital Partners have sold ExtruMed LLC to Vesta Inc., a portfolio company of RoundTable Healthcare Partners. ExtruMed is a Placentia, Calif.-based maker of thermoplastic tubing for diagnostic and therapeutic medical devices and procedures.
Inverness Graham Investments (“Inverness Graham”) and Wedbush Capital Partners (“Wedbush Capital”) announced the sale of portfolio company ExtruMed, LLC (“ExtruMed”). The company was acquired by Vesta, Inc. (“Vesta”), a portfolio company of RoundTable Healthcare Partners (“RoundTable”), generating a 3.4x equity return multiple and a 48% IRR for ExtruMed’s investors. ExtruMed, headquartered in Placentia, California, is the nation’s largest independent manufacturer of high quality, high precision thermoplastic tubing for diagnostic and therapeutic medical devices and procedures.
“We are exceedingly pleased with such a successful exit in this market,” said Scott Kehoe, Managing Principal of Inverness Graham. “ExtruMed is an excellent example of our ‘buy-and-build’ investment philosophy. We worked very closely with the company’s founders to acquire and integrate two complementary add-on acquisitions, build out the company’s sales and marketing infrastructure and recruit a world-class medical device CEO. These initiatives enabled the company to deliver an enviable track record of strong financial performance and further cement its relationships with leading medical device OEMs across a range of high growth medical device application areas.”
“Working with Inverness Graham and Wedbush Capital has been a terrific experience for the ExtruMed team. They helped us complete the add-on acquisitions that were integral to our business, and assisted in refining our overall strategy and executing our growth plan,” said Bill Ellerkamp, CEO of ExtruMed. Vraj Lathiya, the founder of ExtruMed added, “Inverness Graham and Wedbush Capital delivered on their commitment to work side-by-side with us to help take our business to a new level by investing in our people, processes and systems. Through their professionalism, strategic focus and value-added orientation, they transformed a small family-owned company into one capable of competing on a global scale. This was truly a rewarding partnership.”
Inverness Graham, Wedbush Capital and ExtruMed’s management team were assisted by William Blair & Company during the sale process.
About Inverness Graham Investments
Inverness Graham is a lower middle market private equity firm headquartered in suburban Philadelphia. Inverness Graham seeks to acquire high growth, value-added manufacturing and service companies with EBITDA between $3M and $10M. Working in partnership with management teams, Inverness Graham provides the capital, contacts and guidance needed to drive growth and deliver superior shareholder returns. Inverness Graham manages $150M in capital commitments and was formed by senior executives of the Graham Group, an industrial and investment concern with global interests in plastics, packaging, recycling, building products and outsource manufacturing.
About Wedbush Capital Partners
Wedbush Capital Partners is a private equity firm focused on recapitalizations, growth investments, and management-led buyouts of lower middle-market companies. Wedbush Capital acquires and builds growing, profitable companies headquartered in the Western U.S. with revenues ranging from $10 to $50 million at the time of the investment. The firm’s preferred initial investment is $2 to $10 million of equity. Since 1980, Wedbush Capital and its professionals have invested in more than 80 companies in industries including consumer products and services, business and financial services and niche manufacturing. Wedbush Capital is an affiliate of Wedbush Morgan Securities, founded in 1955 and one of the largest investment banks and brokerage firms in the Western United States.