M&A Deal Summary

Linden Capital Partners, Harvest Partners Structured Capital, Crescent Capital Group and Northwestern Mutual Capital Acquire Avalign Technologies

On December 27, 2018, private equity firm Linden Capital Partners, private equity firm Harvest Partners Structured Capital, mezzanine finance firm Crescent Capital Group and corporate investor Northwestern Mutual Capital acquired medical products company Avalign Technologies from Arlington Capital Partners

Acquisition Highlights
  • This is Linden Capital Partners’ 8th, Harvest Partners Structured Capital’s 1st, Crescent Capital Group’s 2nd and Northwestern Mutual Capital’s 1st transaction in the Medical Products sector.
  • This is Linden Capital Partners’ 30th, Harvest Partners Structured Capital’s 20th, Crescent Capital Group’s 50th and Northwestern Mutual Capital’s 4th transaction in the United States.
  • This is Linden Capital Partners’ 9th, Harvest Partners Structured Capital’s 2nd, Crescent Capital Group’s 5th and Northwestern Mutual Capital’s 1st transaction in Illinois.

M&A Deal Summary

Date 2018-12-27
Target Avalign Technologies
Sector Medical Products
Buyer(s) Linden Capital Partners
Harvest Partners Structured Capital
Crescent Capital Group
Northwestern Mutual Capital
Sellers(s) Arlington Capital Partners
Deal Type Secondary Buyout
Advisor(s) William Blair
Harris Williams & Co. (Financial)

Target

Avalign Technologies

Rosemont, Illinois, United States
Avalign Technologies is a manufacturer of implants and instruments, specialty instrumentation, cutting tools, and cases and trays to the orthopedic medical device and specialty surgical markets. Avalign Technologies, Inc. is comprised of two divisions, avalign orthopedics, and avalign Surgical. Avalign Orthopedics manufactures premium implants and instruments for orthopedic, spine, and trauma applications. Avalign Technologies was founded in 2005 and is based in Rosemont, Illinois.

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Buyer(S) 4

Buyer

Linden Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 3.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Linden LLC is a private equity firm that invests in businesses involved in the healthcare and life science sectors. However, the firm also executes any size private equity transaction between $10 million to $2 billion through the firm's alliance with Madison Dearborn Partners. Linden is not a venture capital investor. The firm specializes in investments in non-core businesses owned by large corporations, as well as traditional management buyouts of independent companies. Linden LLC was formed in 2004 and is based in Chicago, Illinois.


DEAL STATS #
Overall 30 of 48
Sector (Medical Products) 8 of 12
Type (Secondary Buyout) 8 of 18
State (Illinois) 9 of 9
Country (United States) 30 of 47
Year (2018) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-26 SeraCare Life Sciences

Milford, Massachusetts, United States

SeraCare Life Sciences, Inc. provides an innovative portfolio of diagnostic controls, plasma-derived reagents and molecular biomarkers used in the discovery, production, and clinical application of a variety of in vitro diagnostics. SeraCare’s global customer base includes in-vitro diagnostics assay developers and manufacturers, clinical laboratories, pharmaceutical companies, and proficiency providers.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-06 Advarra

Columbia, Maryland, United States

Advarra is a provider of IRB, IBC, and compliance consulting services in North America. Fully accredited by AAHRPP, the company serves pharmaceutical, biotechnology, and medical device research sponsors and contract research organizations (CROs), as well as academic medical centers, hospital systems, investigative site networks, and patient advocacy groups. Advarra was founded in 1983 and is based in Columbia, Maryland.

Sell -
DESCRIPTION

Harvest Partners Structured Capital is a private investment group focused on minority position, non-control investments. The Group looks for businesses with $100 million to $1 billion in revenues where Harvest can commit $50 to $250 million. Sectors of interest include business services, consumer services, healthcare, industrial services, manufacturing, and distribution. Harvest Partners Structured Capital is a unit of PE Firm Harvest Partners. The Firm is based in New York City.


DEAL STATS #
Overall 21 of 31
Sector (Medical Products) 1 of 2
Type (Secondary Buyout) 8 of 12
State (Illinois) 2 of 3
Country (United States) 20 of 30
Year (2018) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-17 Signant Health

Blue Bell, Pennsylvania, United States

Signant Health is a global provider of patient-centric clinical trial technology solutions, servicing pharmaceutical and biotechnology companies. The company was formed through the combination of Bracket Global (“Bracket”) and CRF Health (“CRF”). Bracket provides eClinical solutions, focusing on tech-enabled data compliance and training solutions for clinical drug development. CRF provides tech-enabled solutions for the collection of clinical trial data directly from patients, caregivers, and clinicians. Signant Health was founded in 2018 and is based in Blue Bell, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-10 Advancing Eyecare

Jacksonville, Florida, United States

Advancing Eyecare is an operator of diagnostic ophthalmic equipment company established to offer the products and service solutions in the ophthalmic equipment industry. Advancing Eyecare was founded in 2019 and is based in Jacksonville, Florida.

Buy -
Buyer

Crescent Capital Group

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1991
PE ASSETS 39.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Crescent Capital is a provider of debt securities to middle-market companies. Crescent looks to issue senior bank loans, high yield bonds, mezzanine debt and distressed debt to fund a variety of needs. The FIrm's direct lending group looks to provide $10 to $30 million to sponsor-backed companies that generate $5 to $35 million of EBITDA. Crescent's mezzanine practice typically provides junior capital to support buyouts, recapitalizations, and refinancings. Crescent Capital was formed in 1991 and was originally known as TCW/Crescent Mezzanine. The Firm has offices in Los Angeles, Boston, New York, and London.


DEAL STATS #
Overall 56 of 67
Sector (Medical Products) 2 of 2
Type (Secondary Buyout) 21 of 25
State (Illinois) 5 of 5
Country (United States) 50 of 54
Year (2018) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-11 Van Pool

Wilbraham, Massachusetts, United States

Van Pool is a best-in-class provider of transportation services for special needs and homeless students in Massachusetts, Connecticut, and New Hampshire. Van Pool was founded in 1980 and is based in Wilbraham, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-08-05 WhiteWater

Tomball, Texas, United States

WhiteWater owns and operates express exterior car washes, a highly automated car wash model, and generates a significant portion of its revenue from recurring monthly memberships. WhiteWater was founded in 2016 and is based in Tomball, Texas.

Buy -
Buyer

Northwestern Mutual Capital

Milwaukee, Wisconsin, United States

Investor Investor Investor Investor Investor


Category Corporate Investor
PE ASSETS 4.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Northwestern Mutual Capital is a wholly-owned subsidiary of The Northwestern Mutual Life Insurance Company, which is also its largest client. Northwestern Mutual Capital manages private assets for its clients across a portfolio of investment grade private placements, mezzanine and equity co-investments in private equity transactions and private equity funds. Northwestern Mutual Capital is based in Milwaukee, Wisconsin.


DEAL STATS #
Overall 5 of 7
Sector (Medical Products) 1 of 2
Type (Secondary Buyout) 2 of 3
State (Illinois) 1 of 1
Country (United States) 4 of 6
Year (2018) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-06 Valicor Environmental Services

Monroe, Ohio, United States

Valicor Environmental Services is a provider of non-hazardous wastewater treatment services in North America. Leveraging its extensive fleet of tankers and a network of strategically located centralized wastewater treatment (“CWT”) facilities, the Company transports and processes diverse wastewater streams that result from the manufacture of industrial and consumer goods. Valicor helps customers dispose of oily water, leachate, soaps, line flush waste, and similar waste streams, and it also provides a diverse set of landfill solidification and product destruction services. Valicor Environmental Services was established in 1982 and is based in Monroe, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-01 United Pipe & Steel

Ipswich, Massachusetts, United States

United Pipe & Steel Corp. is an independent master distributor of steel, copper and plastic pipe as well as conduit used in water/wastewater, irrigation, plumbing, electrical and infrastructure construction applications.

Sell -

Seller(S) 1

SELLER

Arlington Capital Partners

Chevy Chase, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 7.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Arlington Capital Partners is a middle-market private equity firm focused on buyouts and recapitalizations in targeted growth industries. Arlington targets US based companies valued between $50 and $500 million with strong potential for organic growth and possible consolidation opportunities. Sectors of interest include business services and outsourcing, aerospace/defense, federal and commercial IT, media, education and training, healthcare services, and manufacturing. Arlington Capital was formed in 1999 and is headquartered in Washington DC.


DEAL STATS #
Overall 25 of 38
Sector (Medical Products) 1 of 1
Type (Secondary Buyout) 10 of 11
State (Illinois) 2 of 2
Country (United States) 24 of 36
Year (2018) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-10-04 United Flexible

Romeoville, Illinois, United States

United Flexible, Inc. engages in the design, development, manufacture, and support of high performance and mission-critical engineered solutions for the transfer of fluids and gases in extreme environments. The Company provides a broad portfolio of product lines including fixed and flexible tubes and precision bellows, which are made to exacting requirements and sold to leading OEMs in attractive end-markets such as aerospace/defense engines and systems, industrial, and power generation.

Sell $345M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-28 Intellectual Technology

Fort Wayne, Indiana, United States

Intellectual Technology is a provider of both on-demand printing and fulfillment solutions to modernize DMV operations and services. Powered by its proprietary software, ITI’s on-demand offering features both printers managed by DMV personnel and self-service kiosks which enable customers to receive vehicle registrations and other DMV services without having to wait in line for DMV personnel. Intellectual Technology was founded in 1989 and is based in Fort Wayne, Indiana.

Buy -