M&A Deal Summary

Warburg Pincus Acquires CCS Medical

On October 3, 2005, private equity firm Warburg Pincus acquired medical products company CCS Medical from KRG Capital Partners, First Analysis and American Capital for 360M USD

Acquisition Highlights
  • This is Warburg Pincus’ 7th transaction in the Medical Products sector.
  • This is Warburg Pincus’ 25th largest (disclosed) transaction.
  • This is Warburg Pincus’ 54th transaction in the United States.
  • This is Warburg Pincus’ 6th transaction in Texas.
Investment Fate
  • CCS Medical went bankrupt in 2009.

M&A Deal Summary

Date 2005-10-03
Target CCS Medical
Sector Medical Products
Buyer(s) Warburg Pincus
Sellers(s) KRG Capital Partners
First Analysis
American Capital
Deal Type Secondary Buyout
Deal Value 360M USD
Advisor(s) Paul Hastings (Legal)

Target

CCS Medical

Farmers Branch, Texas, United States
website
CCS Medical, Inc. (formerly Chronic Care Solutions Inc) is a rapidly growing provider of quality home medical supplies and services to patients with chronic conditions throughout the United States. By working closely with healthcare professionals and healthcare organizations we ensure the seamless coordination and efficient delivery of critical medical supplies directly to our patients' doorsteps. We are a leader in the industry and are recognized as the most-recommended provider by healthcare professionals because of our commitment to quality, compliance and superior customer care.

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Buyer(S) 1

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


DEAL STATS #
Overall 85 of 475
Sector (Medical Products) 7 of 21
Type (Secondary Buyout) 10 of 62
State (Texas) 6 of 37
Country (United States) 54 of 234
Year (2005) 15 of 17
Size (of disclosed) 25 of 47
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-01 Gryphon Exploration

Houston, Texas, United States

Gryphon (Houston, Texas) is an independent oil and gas exploration and production company focused on the shallow waters in the Gulf of Mexico.

Sell $282M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-08 Fairfield Energy

Middlesex, United Kingdom

Fairfield Energy is an exploration and production company focused on the exploitation of undeveloped and abandoned oil and natural gas fields in the North Sea through a balance of redevelopment, appraisal, and exploration activities. Warburg Pincus invested in Fairfield in 2005. Management has commenced the evaluation of its first two project areas.

Buy $200M

Seller(S) 3

SELLER

KRG Capital Partners

Denver, Colorado, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1996
PE ASSETS 4.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

KRG Capital Partners is a private equity investment firm focused on acquiring controlling interests in middle-market companies. Prospective transaction situations include owner recapitalizations, management buyouts of private companies, mangement buyouts of corporate divisions, outright purchases, and family successions. Target companies typically generate sales of $35 to $400 million and EBITDA of $10 to $100 million. Sectors of interest include healthcare services, medical technology and life sciences; business services and distribution; construction materials and services; transportation services; marketing; specialty finance and insurance; aerospace, defense, and government services; energy services and products; and infrastructure. KRG primarily looks for opportunities located in the US and Canada but will selectively consider investments in Western Europe. KRG was formed in 1996 and is based in Denver, Colorado with additional offices in Mill Valley, California and Las Vegas, Nevada.


DEAL STATS #
Overall 8 of 41
Sector (Medical Products) 2 of 6
Type (Secondary Buyout) 1 of 14
State (Texas) 1 of 5
Country (United States) 8 of 40
Year (2005) 3 of 6
Size (of disclosed) 10 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-01 SquareTwo Financial

Denver, Colorado, United States

SquareTwo Financial Corp. (Formerly Collect America) financial service company that purchases non-performong credit card debt and obtains other debt placements from credit-granting organizations for distribution to its proprietary national network of franchised law firms. This network utilizes Collect America's proprietary technology including computer database, collection software and communication system and collection methodology and operating philosophy.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-04 The Focus

Calgary, Alberta, Canada

The Focus Corporation is a multi-disciplinary consulting firm providing a range of engineering, geometrics, planning and project management services to clients in the energy, environmental, infrastructure, land development and resource sectors. The Company is headquarted in Edmonton, with addditional branches throughout Saskatchewan, British Columbia, and Alberta, and is a winner of Canada?s 50 Best Managed Companies.

Buy -
SELLER

First Analysis

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Venture Capital Firm
Founded 1981
PE ASSETS 800M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

First Analysis is a financial advisory and investment firm. First Analysis' private equity arm targets investments in growth companies at all stages of development. The Group looks for opportunities based primarily in the US and can commit up to $10 million of equity per transaction. Sectors of particular interest include outsourced services, (business/government services, education, environmental services, healthcare services, marketing services); information technology, (business integration, call centers, healthcare IT, network security, open source, sensor systems, transaction processing); and chemistry enabled businesses (advanced materials, chemicals, healthcare products, polymers, purification). First Analysis was formed in 1981 and is based in Chicago, Illinois.


DEAL STATS #
Overall 29 of 71
Sector (Medical Products) 1 of 4
Type (Secondary Buyout) 3 of 11
State (Texas) 2 of 4
Country (United States) 29 of 70
Year (2005) 6 of 7
Size (of disclosed) 8 of 22
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-01 SquareTwo Financial

Denver, Colorado, United States

SquareTwo Financial Corp. (Formerly Collect America) financial service company that purchases non-performong credit card debt and obtains other debt placements from credit-granting organizations for distribution to its proprietary national network of franchised law firms. This network utilizes Collect America's proprietary technology including computer database, collection software and communication system and collection methodology and operating philosophy.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-22 Lake Region Medical

Chaska, Minnesota, United States

Lake Region Medical, Inc. is a developer and manufacture of OEM devices, supplying the world’s largest medical device companies with minimally invasive delivery solutions.

Sell $1.3B
SELLER

American Capital

website


Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.


DEAL STATS #
Overall 25 of 194
Sector (Medical Products) 3 of 6
Type (Secondary Buyout) 7 of 71
State (Texas) 3 of 15
Country (United States) 25 of 186
Year (2005) 9 of 15
Size (of disclosed) 20 of 56
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-30 Infiltrator Water Technologies

Old Saybrook, Connecticut, United States

Infiltrator Water Technologies LLC is a manufacturer of products for the water and wastewater industries. Infiltrator manufactures a variety of revolutionary products and innovative, environmentally friendly alternatives to traditional stone and pipe leachfield and concrete septic wastewater system components. Infiltrator Water Technologies LLC was founded in 1987 and is based in Old Saybrook, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-05 Kirby Lester

Lake Forest, Illinois, United States

Kirby Lester LLC is a pharmacy automation systems provider that offers a full suite of automated dispensing systems, including automatic tablet counters and robotic drug dispensing systems, to pharmacies in the U.S. and internationally.

Buy -