Case Study
Medin Corporation’s Sale to Seven Point Equity Partners
| 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 |
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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
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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
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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