M&A Deal Summary

Graham Partners and Stellus Capital Management Acquire Rhythmlink

On March 17, 2023, private equity firms Graham Partners and Stellus Capital Management acquired medical products company Rhythmlink from New Heritage Capital

Acquisition Highlights
  • This is Graham Partners’ 2nd and Stellus Capital Management’s 1st transaction in the Medical Products sector.
  • This is Graham Partners’ 49th and Stellus Capital Management’s 55th transaction in the United States.
  • This is Graham Partners’ 1st and Stellus Capital Management’s 1st transaction in South Carolina.

M&A Deal Summary

Date 2023-03-17
Target Rhythmlink
Sector Medical Products
Buyer(s) Graham Partners
Stellus Capital Management
Sellers(s) New Heritage Capital
Deal Type Secondary Buyout

Target

Rhythmlink

Columbia, South Carolina, United States
Rhythmlink designs, manufactures, and distributes single-use medical electrodes and neurodiagnostic solutions. The company also provides custom packaging, private labeling, and tailored products for hospitals, medical centers, and service providers. Rhythmlink was founded in 2002 and is based in Columbia, South Carolina.

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Buyer(S) 2

Buyer

Graham Partners

Newtown Square, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 6.8B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Graham Partners is a private equity that targets middle market industrial and manufacturing companies. The Firm seeks to invest in businesses based in the US and also consider investments in Canada and Western Europe. Graham Partners focuses on strong growth potential companies with high return on invested capital, led by experienced management teams in revenues between $30 - $500 million and EBITDA between $5 million and $50 million. The firm typically invests between $10 million and $100 million in equity and the balance via debt and can invest higher than $100 million through co-investments. Broad areas of interest include building products, water management, medical products, consumer products, packaged food & beverage, packaging, aerospace/defense, agriculture, capital equipment, energy related products, home and outdoor, sports and leisure, and transportation services. Prospective transaction types include MBOs, recapitalization and growth capital financing. Graham Partners is an affiliate of The Graham Group was formed in 1988 and is based in Newton Square, Pennsylvania.


DEAL STATS #
Overall 55 of 60
Sector: Medical Products M&A 2 of 3
Type: Secondary Buyout M&A Deals 11 of 12
State: South Carolina M&A 1 of 1
Country: United States M&A 49 of 52
Year: 2023 M&A 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-02-28 Taoglas

Enniscorthy, Ireland

Taoglas is a provider of antenna and RF solutions, RF antenna, filter and cable solutions to innovative wireless and IoT companies around the world. Taoglas was founded in 2004 and is based in Enniscorthy, Ireland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-07-01 Damping Technologies

Mishawaka, Indiana, United States

Damping Technologies is an advanced material science company focused on engineered aerospace vibration and noise control applications primarily serving the aerospace, defense, and space end markets. Damping Technologies was founded in 1989 and is based in Mishawaka, Indiana.

Sell -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 3.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $20 to $100 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


DEAL STATS #
Overall 56 of 86
Sector: Medical Products M&A 1 of 1
Type: Secondary Buyout M&A Deals 13 of 19
State: South Carolina M&A 1 of 1
Country: United States M&A 55 of 83
Year: 2023 M&A 4 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-01-10 COPILOT

Maitland, Florida, United States

COPILOT is a digital-first patient-centric reimbursement hub services platform intended to support the relationship between patients, healthcare providers and pharmaceutical and device manufacturers. COPILOT was founded in 2010 and is based in Maitland, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-06-14 2X

Malvern, Pennsylvania, United States

2X is a provider of B2B Marketing-as-a-Service (MaaS), offering subscription-based marketing strategy, demand generation, creative, and operations support to enterprise clients. The company helps organizations scale marketing performance efficiently through a global delivery model. 2X was founded in 2017 and is based in Malvern, Pennsylvania.

Buy -

Seller(S) 1

SELLER

New Heritage Capital

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2006
PE ASSETS 1.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

New Heritage Capital is a private investment firm specializing in the acquisition and equity-based recapitalization of private, family owned businesses. Heritage looks to invest in growing, middle-market companies with at least $30 million in annual revenue and EBITDA of at least $4 million. Target sectors include aerospace, consumer products, food/beverage, media/publishing, healthcare, manufacturing, pet products, plastics/packaging, printing, and value-added distribution. New Heritage Capital was formed in 2006 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 19 of 23
Sector: Medical Products M&A 1 of 1
Type: Secondary Buyout M&A Deals 11 of 13
State: South Carolina M&A 1 of 1
Country: United States M&A 17 of 20
Year: 2023 M&A 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-03-08 Stratus

Shrewsbury, New Jersey, United States

Stratus is a provider of specialized technology services, including application managed services, implementation, and consulting. Stratus services the needs of clients across a broad range of industries, and has developed expertise in the unique requirements of clients in the P&C insurance space and users of the guidewire insurance management platform. Stratus was founded in 2001 and is based in Shrewsbury, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-08-01 Flying Colours

Peterborough, Ontario, Canada

Flying Colours is an aviation services company, that provides aircraft completions and maintenance services. Flying Colours specializes in all mid to large-sized business aircraft, including the bombardier global express and challenger families, dassault falcon, beechcraft/hawker and gulfstream models. Flying Colours was founded in 1989 and is based in Peterborough, Ontario.

Sell -