Linden Announces Halyard Health’s Agreement to Acquire CORPAK MedSystems
CHICAGO, IL (April 11, 2016) — Linden announced today the agreement by Halyard Health, Inc. (NYSE: HYH) to acquire privately-held CORPAK MedSystems (Corpak). The acquisition is an all cash transaction for a total consideration of $174 million and is expected to close in the second quarter. Corpak, a portfolio company of Linden Capital Partners, develops, manufactures and markets a broad portfolio of high-quality, branded enteral access devices.
Corpak has a long history of innovating enteral access solutions to improve patient outcomes, safety and comfort. The company’s leading portfolio of nasogastric tubes complements Halyard’s existing enteral feeding products and creates a complete offering of enteral feeding solutions for patients and caregivers. Corpak’s sales for fiscal year 2015 totaled approximately $54 million.
“We are excited to integrate Corpak’s innovative products into our market-leading enteral feeding portfolio enabling us to serve our doctors and their patients more broadly,” stated Robert Abernathy, Halyard Chairman and Chief Executive Officer. “Corpak’s business aligns well with our existing Medical Devices segment with slightly higher sales growth and similar gross margins. This first acquisition is an important step in achieving our strategic vision of transforming Halyard into a leading medical devices company, and positioning our business for future growth.”
“Corpak achieved above-market growth through our focus on innovation, team and culture, and strategic realignment to become the ‘Preferred Enteral Partner’ said Frank McCaney, Chief Executive Officer of Corpak. “We believe that Corpak is well positioned for continued achievement and long-term success with Halyard, a company that understands our business, supports our goals and embraces our values.”
“Linden is proud to see Corpak find a great home with Halyard,” said Brian Miller, a Linden Managing Partner. “During our seven-year ownership, Linden pursued its value creation plan that included an expanded strategy, an enhanced leadership team, a non-core divestiture, multiple joint ventures and acquisitions, new headquarters, direct international expansion, and intensive research and development for new product launches.”
Transaction closing is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
Houlihan Lokey, Inc. served as Corpak’s financial advisor and Kirkland & Ellis LLP served as legal counsel in connection with this transaction.
Robert W. Baird & Co. served as Halyard’s exclusive financial advisor and Alston & Bird LLP served as outside legal counsel for Halyard in connection with this transaction.
About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on leveraged buyouts in the healthcare and life sciences industries. Linden’s strategy is based upon three elements: (i) healthcare and life science industry specialization, (ii) integrated private equity and operating expertise, and (iii) strategic relationships with large corporations. Linden invests in middle market platforms in the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. For more information, visit www.lindenllc.com.
About Halyard Health
Halyard Health, Inc. (NYSE: HYH) is a medical technology company focused on preventing infection, eliminating pain and speeding recovery for healthcare providers and their patients. Headquartered in Alpharetta, Georgia, Halyard is committed to addressing some of today’s most important healthcare needs, such as preventing healthcare-associated infections and reducing the use of narcotics while helping patients move from surgery to recovery. Halyard’s business segments – Surgical and Infection Prevention and Medical Devices – develop, manufacture and market clinically superior solutions that improve medical outcomes and business performance in more than 100 countries. For more information, visit www.halyardhealth.com.