A Medical Device Daily
KPS Capital Partners (New York) has signed a definitive agreement to sell its portfolio company, Attends Healthcare (Greenville, North Carolina), to Domtar (Montreal, Canada) for $315 million in cash.
Raquel Palmer, a Partner of KPS, said, “During our ownership, Attends completed a stunning turnaround and has achieved significant revenue growth year after year. We are proud to be the catalyst for the transformation of Attends, which has resulted in the company's acquisition by a leading strategic buyer. We congratulate and thank Michael Fagan, Attends' CEO, and his management team for their strategic vision and brilliant tactical execution. The enormous value created for our investors since we formed the company in 2007 is the result of their collective effort.“
Completion of the transaction, which is expected during the third quarter, is subject to customary closing conditions.
Attends Healthcare makes a line of adult incontinence products for the North American marketplace that are sold primarily under the Attends brand name. Attends Healthcare primarily serves the non-retail sectors with a focus on the acute care, long-term care, and rapidly growing home healthcare sectors.
Michael Fagan, CEO of Attends, said, “KPS was the only investor to recognize the potential value of our business four years ago. Working in partnership with KPS, we quickly executed a remarkable turnaround that formed the foundation for our significant growth. We are very grateful to KPS for its leadership and its commitment to growing our business, which included funding the modernization of our manufacturing platform. We are thrilled to join Domtar, which has the material resources, access to capital and global reach that will enable Attends to reach another level of success.“
KPS Capital Partners is the manager of the KPS Special Situations Funds, a family of private equity funds with over $2.9 billion of assets under management focused on constructive investing in restructurings, turnarounds and other special situations.
In other dealmaking news:
• Laboratory Corporation of America Holdings (LabCorp; Burlington, North Carolina) said it is extending until 5 p.m., EST, on Sept. 9, LabCorp's previously reported cash tender offer for all outstanding shares of the common stock of Orchid Cellmark (Dayton, Ohio). On May 17, LabCorp received a request from the Federal Trade Commission, for additional information under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, applicable to the acquisition of Orchid by LabCorp. The company previously extended its tender offer to August 12.
On April 19, LabCorp, through its wholly owned subsidiary OCM Acquisition, commenced a tender offer for all outstanding shares of Orchid at a price of $2.80 per share net to the seller in cash without interest and subject to applicable withholding taxes.
LabCorp makes diagnostic technologies and the first in its industry to embrace genomic testing.
• Investors at Neoprobe's (Dublin, Ohio) annual meeting approved the sale of the company's handheld gamma radiation detector business. The buyer is Devicor Medical Products (Pleasant Prairie, Wisconsin) which is paying $27.3 million in cash and pledging up to $20 million in future royalties through the deal, which was disclosed in May. In addition, Neoprobe said it beat its own promised end-of-August deadline by filing its application for cancer diagnostic aid Lymphoseek, a drug one analyst has said could bring in $500 million in 2013 if it hits the market in time.
Neoprobe last year generated $10.7 million in revenue and lost $50 million, much of the red ink tied to bookkeeping on finance deals.
Neoprobe makes precision diagnostics that enhance patient care and improve patient benefit. Neoprobe is actively developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. The company's two lead radiopharmaceutical agent platforms – Lymphoseek and RIGScan – are intended to help surgeons better identify and treat certain types of cancer.