Edgewater Growth Capital Partners, L.P. is pleased to announce the recent sale of two of the Fund’s portfolio companies, Wound Care Solutions, LLC (“Wound Care Solutions”) and Sechrist Industries, Inc.(“Sechrist”). Wound Care Solutions is the leading outsourced provider of wound care clinic management services to more than 350 hospitals nationwide. Sechrist is the world’s leading manufacturer of monoplace hyperbaric oxygen therapy chambers, a critical piece of equipment in comprehensive wound care centers. Edgewater joined The Jordan Company, L.P. and JZ Capital Partners in this investment.
Wound Care Solutions and Sechrist have expanded through a combination of industry acquisitions and organic growth to become the recognized leaders in highly fragmented and underserved markets. Demand for wound care services has been driven by the rising incidence of patients with chronic wounds, including the elderly and diabetic populations. Both companies were sold to National Healing Corporation and are well-positioned to serve and benefit from continued growth in chronic disease markets.
Edgewater Growth Capital Partners II, L.P. is pleased to announce the recent sale of our portfolio company BarrierSafe Solutions International Inc. (“BarrierSafe”). BarrierSafe is a leader in the Personal Protective Equipment industry. The Company designs, develops and markets disposable gloves and related food and health safety products. It sells over six billion single-use gloves annually. BarrierSafe was acquired in November 2007 and its recent sale produced a highly attractive return. Edgewater and Linden Capital Partners were the majority equity owners of the Company and partnered with management who were minority investors.
Since acquiring the company in 2007, BarrierSafe’s revenue and EBITDA has increased significantly. Edgewater helped lead the integration of Microflex Corp. and FoodHandler, Inc. which formed BarrierSafe. We also recruited new leadership, streamlined operations and worked closely with management on organic growth and add-on acquisitions. BarrierSafe’s results reflect Edgewater’s investment strategy of low acquisition prices and conservative use of debt.
Edgewater Growth Capital Partners, L.P. is pleased to announce the recent sale of our portfolio company Dantom Systems, Inc. (“Dantom”). Dantom is a leading provider of business process solutions servicing the accounts receivable management and revenue cycle management industries. During the period of Edgewater’s ownership, Dantom expanded rapidly through organic growth and acquisitions. Since 2007, the Company’s revenue has grown at an annual rate of 31% while EBITDA grew annually in excess of 60%. Edgewater also helped lead four strategic acquisitions which were highly accretive through plant consolidations and expanded the Company’s customer base into the health care industry. The Dantom investment earned a return of nearly 4X the Fund’s invested capital.
Dantom has been an excellent example of Edgewater’s investment strategy. The Company was acquired through a direct introduction to the Founders at an attractive valuation and capital structure. Edgewater appointed the Company’s Chairman from our Advisory Board and recruited an experienced new CEO and CFO. This team led Dantom through a period of rapid growth and an 80/20 profit improvement process, increasing EBITDA margins from 15% to 30% over a two year time period.
Edgewater Growth Capital Partners is pleased to announce the recent sale of our portfolio company G&H Wire Company, Inc. (“G&H”). G&H is a manufacturer of orthodontic archwires and a distributor of other orthodontic products. Edgewater acquired G&H in December 2006 and helped management grow the company’s earnings substantially during the investment period. The sale of G&H earned a return in excess of 8 times our invested capital.
G&H is the sixth realization from Edgewater Growth Capital Partners II. Most of this Fund’s investments were made in the 2007 time period which was a period of high purchase multiples and aggressive use of debt for much of the private equity industry. However, by adhering to our investment strategy of low purchase prices, focusing on profitable growth and conservative use of debt, Edgewater has been able to achieve attractive returns on investments made at the peak of the market.