Cardinal Health Sells MedSystems Business to Linden
Dublin, Ohio (September 2, 2008) – Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today announced the completion of the sale of its MedSystems business to Linden LLC, a healthcare and life science private equity firm.
Under the terms of the agreement, Linden acquired MedSystems, a maker of enteral devices and surgical protection products, which joined Cardinal Health through the acquisition of VIASYS Healthcare in 2007. The company has been renamed Corpak MedSystems Inc. under Linden’s ownership. Terms of the agreement were not disclosed.
“Corpak MedSystems is an innovative and growing business, but it does not fit into the core focus of our clinical and medical products businesses,” said Dave Schlotterbeck, vice chairman and chief executive officer of Clinical and Medical Products for Cardinal Health. “Linden has the expertise and experience to maximize value in mature health care businesses, and we believe MedSystems will have great opportunities to grow outside of the Cardinal Health portfolio.”
Corpak MedSystems manufactures and globally markets a complete range of value-added single use feeding delivery devices and systems primarily serving the hospital ICU, NICU and PICU markets. Its products include CORFLO® enteral feeding tubes, the CORTRAK™ feeding tube placement system, Farrell Valve, and CORFLO® ANTI-IV Enteral Feeding safety connection products. In addition, the company currently produces and markets smoke evacuation and surgical protection products through its Stackhouse Division.
“Corpak MedSystems is an ideal investment for Linden because it is the culmination of a long relationship with the business and Cardinal Health. It exemplifies Linden’s focus on partnering with corporations to provide growth for their non-core divisions. It is a solid business that has historically delivered consistent revenue and earnings growth and still has much more potential for growth,” said Eric C. Larson, Founder and Managing Partner of Linden. “There are a number of opportunities to further strengthen the Corpak MedSystems business by expanding the sales of the company’s unique products both in the U.S. and internationally. We will also pursue strategic acquisitions and we are pleased that Tom Kuhn will once again lead the business and drive its growth going forward.”
Thomas I. Kuhn, a Linden Executive in Residence, previously served as president of the Corpak MedSystems business for 15 years and has been appointed CEO of the business under Linden’s ownership.
“Linden’s health care expertise and understanding of the business will help us apply a much greater focus on Corpak MedSystems to grow the company,” Kuhn said. “Corpak MedSystems has a strong and experienced management team and we are delighted to be partnered with Linden to implement long-term strategic growth initiatives as we remain dedicated to serving the needs of critically ill patients.”
Harris Williams & Co. acted as the exclusive adviser to Cardinal Health on the transaction.