LifeStream International Completes Acquisitions of Surgimedics and Certain Assets of Minntech Corporation
LifeStream International, Inc., a leading global cardiopulmonary products company, today announced it has completed the acquisitions of Surgimedics, Inc. in The Woodlands, Texas, and certain assets of the cardiosurgery business of Minneapolis-based Minntech Corporation (Nasdaq: MNTX). Formed in July 1999 by the partnership of Banc One Equity Capital (formerly First Chicago Equity Capital) and Garrett Capital Advisors LLC, LifeStream International began operations in August after it completed the acquisition of the assets of the cardiopulmonary products division of C.R. Bard, Inc. (NYSE: BCR).
“LifeStream International will quickly become a major force in the cardiopulmonary products industry by serving cardiovascular clinicians with the highest quality products and services,” said Robert W. Kleinert Jr., LifeStream’s president and chief executive officer. “We are investing in several areas that will enhance our leadership position, including new product development, manufacturing facilities that will improve quality and lower costs, and sales information technology and systems that enhance customer service and market response. By successfully executing our strategy, we expect to grow revenue at twice the projected industry rate while improving efficiency in manufacturing and distribution.”
Kleinert also announced the LifeStream management team, which includes several former managers at Bard and Surgimedics, who are directing the company’s sales and marketing, operations, finance, legal, human resources and regulatory and quality affairs functions. The LifeStream management team includes: Mike Dawson, Vice President, Global Sales & Marketing; Dan Cox, Vice President & General Manager, Operations; Steve DeCoste, Vice President, Finance; Lisa Bossard Funk, Vice President, Legal and Human Resources; Peter Vitins, Interim General Manager, Europe; Rich Bliss, Interim Vice President, Regulatory and Quality Affairs; Bruno Schell and Franz Scheele, Co-General Managers, HMT Medizintechnik; Bonnie Vivian, Vice President and General Manager of Denver Biomaterials.
With annualized revenue of approximately $85 million, LifeStream International will be the largest company in the industry solely dedicated to cardiopulmonary products. Approximately half of its of revenue will be derived from outside the United States. LifeStream markets a range of blood-circulation and oxygenation devices and related products used by surgeons and perfusionists during open-heart surgery, including oxygenators, custom tubing packs, hemoconcentrators, blood filters, reservoirs, cardioplegia products, cannulae and catheters. The company employs approximately 400 people and has manufacturing facilities in the United States, Mexico and Germany.
The formation of LifeStream International was the first transaction for the exclusive partnership of Banc One Equity Capital and Garrett Capital Advisors, a partnership created to pursue investments in health care and life sciences. Specific fields of interest within the medical devices, analytical instruments and clinical diagnostic equipment markets include cardiovascular medicine, urology, surgical instruments and devices, orthopedics and blood products.
Banc One Equity Capital builds existing portfolio companies in targeted industries, including health care and life sciences, business services, and precision instruments. Since 1995, the company has made acquisitions totaling more than $500 million. Banc One Equity Capital is the private equity investment group of BANK ONE CORPORATION (NYSE: ONE), the nation’s fifth largest bank holding company, with assets of more than $250 billion.
Chicago-based Garrett Capital Advisors is focused on helping its equity sponsors find, assess, acquire, oversee and exit companies appropriate for their investment portfolios. The company’s partners, Scott Garrett and Jim Connelly, have more than 50 years of combined experience across a broad range of health-care and life science businesses.
