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Medin Corporation’s Sale to Seven Point Equity Partners

Medin Technologies

Transaction Details

Client: Medin Corporation is a Totowa, New Jersey-based contract manufacturer of custom and standard instrument trays, cases, and sterilization containers to top orthopedic companies worldwide
Ownership: Family-owned
Buyer: Seven Point Equity Partners is a Westport, Connecticut-based private investment firm concentrating on control equity investments in lower middle market companies
Transaction: Medin Technologies, Inc., portfolio company of Seven Points Equity Partners, acquired 100% of the assets of Medin Corporation
Consideration: Cash plus earn-out
Valuation: Undisclosed

Situation Review

  • KGI was engaged by Medin to conduct a recapitalization/sale
  • Existing bank debt needed to be replaced with new capital and to clean up the balance sheet after the business moved to a new facility
  • The majority owner desired to continue to focus on sales and marketing aspects of the business leaving operations to new management

Transaction Process

  • KGI worked with ownership and marketed the business to strategic industry buyers, debt funds and specialized financial buyers
  • Five offers were received followed by management meetings and LOIs
  • Ownership closed a deal with a buyer who offered a recapitalization of the balance sheet, new equity and had a risk profile that matched the business

Outcome

  • The majority owner remains active in the business with responsibilities for strategic partnerships with customers and vendors
  • Ownership significantly reduced their personal financial exposure while new capital and management has entered the business to position it for the future
  • Opportunities for equity appreciation tied to performance allow for future financial gain by ownership