Secondary Buyout • Medical Products

Audax Private Equity Acquires Katena

On June 24, 2015, private equity firm Audax Private Equity acquired medical products company Katena from Cortec Group, Golub Capital and NewStar Financial

Acquisition Context
  • This is Audax Private Equity’s 5th transaction in the Medical Products sector.
  • This is Audax Private Equity’s 79th transaction in the United States.
  • This is Audax Private Equity’s 3rd transaction in New Jersey.
Investment Fate
  • Katena was sold to a strategic buyer in 2021.

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M&A Deal Summary

Date June 24, 2015
Target Katena
Sector Medical Products
Buyer(s) Audax Private Equity
Sellers(s) Cortec Group
Golub Capital
NewStar Financial
Deal Type Secondary Buyout
Advisor(s) William Blair (Financial)

Target Company

Katena

Parsippany, New Jersey, United States
Katena is a provider of precision ophthalmic instruments and therapeutics to physician offices, hospitals, and surgical centers. Katena’s product offering includes precision surgical instruments, single-use devices, and specialty biologics that are sold into over 100 countries through a network of direct salespeople and distributors. Katena was founded in 1975 and is based in Parsippany, New Jersey.
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Buyer Overview 1

Buyer

Audax Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Private Equity is a private equity firm focused on acquiring control positions in a variety of mid to large North American headquartered companies. The Firm segments its activities into lower middle-market and larger scale investing. Within its larger group, Audax targets profitable businesses valued up to $800 million and within its lower middle-market group, the Firm seeks companies valued up to $125 million. Sectors of interest include business services, consumer products/services, financial services, healthcare services, industrial services, software, and technology. Audax has a special interest in businesses that can benefit from a buy and build investment strategy for growth. Audax Private Equity was formed in 1999 and is based in Boston, Massachusetts.


Deal Context for Buyer #
Overall 81 of 170
Sector: Medical Products 5 of 9
Type: Secondary Buyout 30 of 73
State: New Jersey 3 of 6
Country: United States 79 of 161
Year: 2015 6 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-14 Trexon

Macedonia, Ohio, United States

Trexon is a designer and specialty distributor of high performance, ruggedized wire, cable, connectors, and assembled products. TPC's highly engineered products transmit power and signal in critical applications such as robotic manufacturing systems and temporary power for auto plants, mines, factories, and other harsh industrial environments. Trexon was founded in 1979 and is based in Macedonia, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-25 Quest Specialty Chemicals

Charleston, South Carolina, United States

Quest Specialty Chemicals is a specialty chemicals and coatings business. QSC is engaged in the formulation, manufacturing, and marketing of coatings designed to repair, restore, and preserve the assets of our customers. Quest Specialty Chemicals is based in Charleston, South Carolina.

Sell -

Seller Profiles 3

SELLER

Cortec Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 6.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Cortec Group is a private equity firm focused on acquiring mid-sized businesses operating in basic industries. Cortec Group is an experienced and knowledgeable investor in healthcare products and services, B2C and B2B products, value-added distribution (including eCommerce), and specialty services companies with equity of $100-$500 million and EBITDA of $10 to $50 million. Cortec Group was formed in 1984 and is based in New York City.


Deal Context for Seller #
Overall 23 of 35
Sector: Medical Products 5 of 6
Type: Secondary Buyout 12 of 22
State: New Jersey 2 of 2
Country: United States 23 of 34
Year: 2015 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-23 Urnex Brands

Elmsford, New York, United States

Urnex Brands, Inc. is a manufacturer and marketer of coffee machine cleaning products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-11-16 Community Veterinary Partners

Philadelphia, Pennsylvania, United States

Community Veterinary Partners owns and operates veterinary hospitals and is committed to providing world-class treatment and health services to animals. Community Veterinary Partners was founded in 2009 and is based in Philadelphia, Pennsylvania.

Buy -
SELLER

Golub Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Lender
Founded 1994
PE ASSETS 75.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Golub Capital is a private investment firm focused on making debt and equity investments in US based middle-market companies. Golub looks to invest between $5 and $75 million in businesses with established operating cash flow, strong customer relationships, and 'sustainable proprietary positions in their markets'. Prospective investment structures include refinancings, recapitalizations, buyouts, and growth financings. Sectors of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub Capital was formed in 1994 and maintains offices in New York City, Atlanta, and Chicago.


Deal Context for Seller #
Overall 10 of 43
Sector: Medical Products 3 of 5
Type: Secondary Buyout 5 of 20
State: New Jersey 1 of 2
Country: United States 10 of 41
Year: 2015 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-06-16 Outcomes

Orlando, Florida, United States

Outcomes is a developer and supplier of pharmacy management software solutions to the independent, hospital, long-term care, and specialty pharmacy markets across the United States, Mexico, and the Caribbean. Outcomes offers software solutions to enable insurance claims processing, e-prescription connectivity, pharmacy workflow management, and other critical functions for its pharmacist customers. Outcomes was formed in 1977 and is based in Orlando, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-06 Dental Care Alliance

Sarasota, Florida, United States

Dental Care Alliance is a provider of a full suite of dental services, including general dentistry, hygiene, pediatric dentistry, orthodontics, endodontics, periodontics and oral surgery. Dental Care Alliance was founded in 1991 and is based in Sarasota, Florida.

Buy -
SELLER

NewStar Financial

Boston, Massachusetts, United States

Category Company
Founded 2004
Sector Financial Services
Employees122
Revenue 220M USD (2015)
DESCRIPTION

NewStar Financial, Inc. is an internally-managed, commercial finance company with $7.3 billion of assets managed across two complementary business lines — middle market direct lending and asset management. The Company's direct lending activities are focused on meeting the complex financing needs of companies and private investors in the middle markets through specialized lending groups that offer a range of flexible debt financing options. Credit investments are originated directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. Through its asset management platforms, NewStar offers a range of investment products employing credit-oriented strategies focused on middle market loans and liquid, tradeable credit.


Deal Context for Seller #
Overall 4 of 6
Sector: Medical Products 1 of 1
Type: Secondary Buyout 2 of 2
State: New Jersey 1 of 1
Country: United States 4 of 6
Year: 2015 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-31 Custom Windows & Doors

Ocala, Florida, United States

Custom Window Systems, Inc. is a designer and manufacturer of windows, doors, and porch enclosure products in the southeastern United States. CWS offers a full range of aluminum impact-resistant windows and doors, aluminum and vinyl non-impact windows and doors, and porch enclosure products. Custom Window Systems, Inc. was founded in 1986 and is based in Ocala, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-02 Radius Equipment Finance

Boston, Massachusetts, United States

Radius Equipment Finance will provide flexible financing options for middle market companies to fund purchases of essential-use business equipment. The operational unit will be based out of Boston and sales professionals will cover territories across the U.S.

Sell -