Medical Manufacturing — Merchant Banking
In 2004, a middle market private equity sponsor acquired a $30 million contract manufacturer of precision molded elastomeric components for the medical industry in partnership with another private equity fund and management. As the lead director for the sponsor, Carbide Partners’ Managing Partner, Mark Kammert, negotiated the terms of the acquisition and raised the initial senior debt, mezzanine and equity co-investor financing for the transaction.
Although the company enjoyed a strong competitive position and close relationships with its customers, the business faced several strategic challenges:
Working in partnership with the equity co-investor and management, Mr. Kammert led a variety of initiatives to strengthen the company’s business in the years following the initial transaction:
In 2008, after the company’s revenues and EBITDA had more than tripled, Mr. Kammert led a corporate sale process that culminated in the sale of the company to a strategic corporate buyer at a high valuation multiple. The company’s equity investors realized large gains on their investment, and over 60 of the company’s employees shared in the profits from the sale through their participation in an equity incentive plan.