Linden, in Partnership with CHS, Acquires Suture Express, Inc.
Chicago, Illinois (July 31, 2006) – Code Hennessy & Simmons LLC (“CHS”) and Linden LLC (“Linden”) announced today that they have made a majority equity investment in Suture Express, Inc. (“Suture Express”), a rapidly growing distributor of sutures and other wound closure products for acute care hospitals and surgery centers across the United States. The equity investment in SutureExpress represents a partnership between CHS, Linden and Suture Express senior management.
Suture Express offers over 1,200 acute care hospitals, ambulatory surgery centers and other customers a comprehensive assortment of more than 5,000 wound closure SKUs with no minimum order size, no required frequency of order and guaranteed next-day delivery for most orders. Orders are processed and fulfilled out of a single facility in Lenexa, Kansas.
Jim Vaughn, Vice President of Sales, said, “My co-founders and I formed Suture Express in 1998 because we believed there was an opportunity to relieve the headache of sutures procurement at acute care hospitals and ambulatory surgery centers across the U.S. Today, we offer the most cost-efficient distribution model in the industry. With the resources and expertise of CHS and Linden, we hope to expand our product line and supplier base to satisfy more of our customers’ needs.”
Tom Formolo, Partner at CHS, said, “Its unique business model allows Suture Express to offer customers the lowest distributor mark-up and best service levels in the industry for the products it sells. With an exclusive focus on high priced, low cube, low weight items that can be delivered efficiently overnight with minimal overhead, Suture Express provides a straightforward, low-cost alternative to a complex and often inefficient procurement model. We look forward to helping Suture Express expand its activities to capture a larger share of its customers’ procurement needs.”
Brian Miller, Partner at Linden, said “The combination of CHS’ deep distribution experience with Linden’s healthcare network creates the ideal investment team to support Suture Express’ growth. We look forward to introducing new customers and products, as well as enhancing the successful existing management team and board.”
The investment in Suture Express complements CHS’ portfolio of investments in the distribution industry, which currently includes Beacon Roofing Supply, Inc. (Nasdaq: BECN), a distributor of residential and commercial roofing products; The Hillman Group, a distributor of fasteners, key blanks, signage and other small hardware components; Hoboken Wood Flooring Corporation, a distributor of hard surface flooring; Home Acres Building Supply Co., a distributor of gypsum wallboard in the Upper Midwest; Houston Wire and Cable Company (Nasdaq: HWCC), a distributor of specialty wire and cable; Kranson Holdings, Inc., a distributor of rigid packaging solutions; SunSource, a distributor of fluid power products and systems; and TruckPro, Inc., a distributor of aftermarket parts and accessories for heavy-duty vehicles.