RoundTable Healthcare Partners, a private equity firm focused exclusively on the healthcare industry, has entered into a definitive agreement to sell one of its portfolio companies, Ascent Healthcare Solutions, to medical technology company Stryker for USD525m in cash.
Prior to closing, Ascent will distribute USD35m of cash from its balance sheet to its shareholders, taking the total proceeds from the sale to approximately USD560m.
The closing is conditional on regulatory approval and other customary closing conditions.
Ascent is an independent third-party reprocessor of single-use medical devices in the healthcare industry. It was created through a merger of Vanguard Medical Concepts, and Alliance Medical in December 2005. RoundTable acquired a majority interest in Vanguard in September 2001.
"RoundTable’s initial investment in Vanguard was driven by our belief that the reprocessing of medical devices would produce significant cost savings for hospitals and divert thousands of pounds of medical waste from landfills," says Joseph F. Damico (pictured), a founding partner of RoundTable and the chairman of the board of Ascent. "John Grotting and the management team have taken this concept and become the market leaders, growing revenue and profitability by expanding their product offerings and increasing their customer base to over 1800 hospitals and numerous group purchasing organisations throughout North America."
