RoundTable Healthcare Partners Acquires Majority Stake in Salter Labs

Acquisition provides new platform in respiratory and sleep diagnostics markets

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Nov 02, 2010, 11:51 ET

LAKE FOREST, Ill., Nov. 2, 2010 /PRNewswire/ -- RoundTable Healthcare Partners ("RoundTable"), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has acquired a majority interest in Salter Labs ("Salter"). Founded in 1976 by Peter Salter, Salter is a leading manufacturer of disposable respiratory and sleep diagnostics products used in both the home medical and acute care markets.

"Salter represents an exciting opportunity for RoundTable to enter the respiratory market," said Lester B. Knight, Founding Partner and Co-Chairman of RoundTable. "We are looking forward to partnering with the management team and employees of Salter as they expand on their successful track record of developing and marketing innovative products." Mr. Knight will serve as Salter's new Chairman.

"RoundTable is an ideal partner for Salter," stated Mr. Salter. "Their extensive experience in the medical consumables industry and their strategic insight will be extremely valuable to Salter as it continues to execute its growth strategy."

To finance the acquisition of Salter and further growth opportunities, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of senior subordinated notes. The senior credit facilities were led by GE Commercial Finance Healthcare Financial Services, and included the PrivateBank. Salter's senior subordinated notes were acquired by RoundTable Capital Partners II ("Capital Fund II"), RoundTable's second captive subordinated debt fund. Capital Fund II is a dedicated subordinated debt fund that makes fixed rate subordinated debt investments alongside the equity investments of RoundTable's equity funds. As part of the transaction, Bolder Capital acquired a minority equity stake alongside RoundTable, in addition to a portion of the senior subordinated notes.

RoundTable's investment strategy targets companies in the healthcare industry that fall within the expertise and experience of the firm's operating and transaction principals. Salter is RoundTable's first platform investment from both its recently closed $600 million Fund III and its recently closed $200 million Capital Fund II.

About RoundTable Healthcare Partners

RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling $400 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.

About Salter Labs

Salter Labs is a leading manufacturer of medical consumables and equipment in the multi-billion dollar home medical and acute care respiratory consumables markets and has been supplying innovative and proprietary medical consumables and equipment for over 30 years. The Company develops, manufactures and sells primarily single-use, disposable products that help homecare providers and hospitals measurably improve outcomes and the quality of care. Salter holds more than 31 patents, a significant number of copyrights and has numerous patent applications pending. Salter Labs products are sold domestically to approximately 5,000 home healthcare providers including the local branches of national homecare companies such as Lincare, Apria and Rotech.

SOURCE RoundTable Healthcare Partners