M&A Deal Summary

Ancor Capital Partners and Merit Capital Partners Acquire Carex Health Brands

On September 1, 2010, private equity firm Ancor Capital Partners and mezzanine finance firm Merit Capital Partners acquired medical products company Carex Health Brands from KCA Partners

Acquisition Highlights
  • This is Ancor Capital Partners’ 3rd and Merit Capital Partners’ 4th transaction in the Medical Products sector.
  • This is Ancor Capital Partners’ 9th and Merit Capital Partners’ 57th transaction in the United States.
  • This is Ancor Capital Partners’ 1st and Merit Capital Partners’ 2nd transaction in South Dakota.
Investment Fate
  • Carex Health Brands was sold to a strategic buyer in 2014.

M&A Deal Summary

Date 2010-09-01
Target Carex Health Brands
Sector Medical Products
Buyer(s) Ancor Capital Partners
Merit Capital Partners
Sellers(s) KCA Partners
Deal Type Secondary Buyout
Advisor(s) Harris Williams (Financial)

Target

Carex Health Brands

Sioux Falls, South Dakota, United States
Carex Health Brands, Inc. is a designer and marketer of branded home medical equipment. Carex produces and sells products under four brands – Carex, Apex, Bed Buddy and Thera-Med. Products include mobility aids, bath safety products, medication compliance aids, and hot/cold therapy products. Carex’s customers are primarily big box retailers, chain pharmacies, grocery stores and pharmaceutical distribution companies.

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Buyer(S) 2

Buyer

Ancor Capital Partners

Southlake, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
Size Small
Type Sector Agnostic
DESCRIPTION

Ancor Capital Partners is a private equity firm focused on recapitalizations of lower middle-market companies operating in the manufacturing, distribution, and healthcare sectors. Prospective businesses are generally valued between $25 and $150 million and are profitable with EBITDA of $5 to $15 million. The Firm prefers businesses located in the US. Ancor will does not invest in start-ups, turnarounds, or businesses in real estate, or energy exploration. Ancor Capital Partners was formed in 1994 and is based in Southlake, Texas.


DEAL STATS #
Overall 9 of 27
Sector: Medical Products M&A 3 of 4
Type: Secondary Buyout M&A Deals 2 of 5
State: South Dakota M&A 1 of 1
Country: United States M&A 9 of 27
Year: 2010 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-08-26 Spencer N Enterprises

El Monte, California, United States

Spencer N Enterprises, Inc. is a designer, manufacturer, importer and marketer of decorative pillows, window coverings and other home furnishing textile products. Spencer N Enterprises was founded in 2000 and is based in El Monte, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-30 Simply Fresh Foods

Buena Park, California, United States

Simply Fresh Foods produces fresh, all-natural foods for fast-growing segments of the refrigerated products market across a wide range of channels. The company markets its products under several brands. The Rojo’s brand encompasses innovative salsas and dips and is a top label of fresh salsa and layered dips. The company’s San Francisco brand covers a line of seafood salads and has been on the market since 1987.

Buy -
Buyer

Merit Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Merit Capital Partners is a private investment firm that targets investments in middle market manufacturing, distribution, and service based businesses. Merit looks for companies generating at least $20 million in sales and at least $4 million in EBITDA. Merit can provide both equity and junior capital financing and looks to commit at least $15 million per transaction. Prospective transaction situations include management buyouts, recapitalizations, growth financings, divestitures, unsponsored transactions, and ESOPs. Merit Capital will not invest in start-ups, turnarounds, real estate, specialty retail, or oil/gas opportunities. Merit Capital was originally known as William Blair Mezzanine Capital and became independent in 2004. Merit Capital Partners was formed in 1993 and is based in Chicago, Illinois.


DEAL STATS #
Overall 57 of 105
Sector: Medical Products M&A 4 of 5
Type: Secondary Buyout M&A Deals 6 of 12
State: South Dakota M&A 2 of 2
Country: United States M&A 57 of 104
Year: 2010 M&A 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-01 Bluegrass Ingredients

Springfield, Kentucky, United States

Bluegrass Ingredients is a processor of custom, value-added dairy ingredients for the food and beverage industry. Bluegrass sources raw milk from dairy farmers and processes it into a wide range of intermediate and shelf stable goods such as dry milk and cheese powders, non-dairy creamers, shortening powders, cheese, and specialty butters. Bluegrass Ingredients was established in 1995 and is based in Springfield, Kentucky.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-01 WeCare Operations Holdings

Jordan, New York, United States

WeCare LLC is a waste-management company providing processing and transportation of non-hazardous residual organic waste and municipal solid waste throughout the Northeastern United States and New England. The company is comprised of two primary business units – WeCare Organics and WeCare Transportation.

Buy -

Seller(S) 1

SELLER

KCA Partners

San Francisco, California, United States

Investor Investor


Category Private Equity Firm
Founded 1993
Size Small
Type Sector Agnostic
DESCRIPTION

KCA Partners Limited is a buy and build private investment firm focused on consolidation strategies. KCA will consider acquiring non-core divestitures from large public corporations, as well as owner-founder businesses and under-performing divisions of mid-sized companies. For new platform opportunities, KCA looks to commit $3 to $15 million of equity capital in businesses valued up to $100 million. Sectors of interest include energy efficiency, environmental equipment and services, green products and services, renewable energy, infrastructure products and services, safety/security, transportation/logistics, food/beverage, and consumer healthcare. KCA prefers majority ownership, but will consider select minority investment positions. KCA was formed in 1993 and is based in San Francisco.


DEAL STATS #
Overall 2 of 4
Sector: Medical Products M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 2
State: South Dakota M&A 1 of 1
Country: United States M&A 2 of 4
Year: 2010 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-09-02 Griplock Systems

Carpinteria, California, United States

Griplock Systems is a designer and provider of proprietary cable suspension hardware and low voltage systems used in architectural lighting, retail display and signage, industrial and highbay lighting, rigging, art display, and other growing end markets. Griplock Systems was founded in 1992 and is based in Carpinteria, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-29 Griplock Systems

Carpinteria, California, United States

Griplock Systems is a designer and provider of proprietary cable suspension hardware and low voltage systems used in architectural lighting, retail display and signage, industrial and highbay lighting, rigging, art display, and other growing end markets. Griplock Systems was founded in 1992 and is based in Carpinteria, California.

Sell -