Water Street Sells Precision Dynamics Corporation to Brady Corporation

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Dec 31, 2012, 08:01 ET

CHICAGO, Dec. 31, 2012 /PRNewswire/ -- Water Street Healthcare Partners, a strategic private equity firm focused exclusively on the health care industry, announced today that it has sold Precision Dynamics Corporation ("PDC") to Brady Corporation (NYSE: BRC) in a cash transaction for $300 million, subject to customary working capital and post-close adjustments. Water Street divested PDC after spending five years building the company into a global leader in patient safety identification (ID) through a combination of strategic acquisitions and organic initiatives. Headquartered in Valencia, Calif., PDC designs and manufactures products used by hospitals across the United States to reduce medical errors, and integrate and share patient data.

Water Street partnered with PDC's founders and management team in 2007 to invest in the company when it specialized in health care ID wristbands. Two years later, Water Street facilitated PDC's acquisition of TimeMed Labeling Systems, Inc. to expand the company's products into health care labeling systems. In 2010, Water Street initiated an industry-leading merger between PDC and The St. John Companies to create the world's foremost provider of health care wristbands, specialty labels and identification solutions. The firm recruited an experienced management team to lead the combined company. It invested in PDC's infrastructure including a new headquarters, manufacturing facility and technology platform to more effectively serve customers.

"PDC is an excellent example of the long-term value Water Street can create in partnership with founders and executives of middle-market health care companies. When we first met with PDC's founders, we proposed a strategic path to build on the company's strength in hospital ID wristbands. We invested in the company's product development and manufacturing capabilities, and significantly broadened its product portfolio to transform PDC into a global leader in patient safety identification," said Curt Selquist, an operating partner with Water Street and chairman of PDC. "We are pleased that the successful execution of our strategy resulted in a highly regarded market leader purchasing PDC to further its long-term growth."

Brady President and Chief Executive Officer Frank M. Jaehnert stated, "The acquisition of PDC provides an anchor position for Brady in the attractive health care identification space and fits well with our mission to identify and protect premises, products and people. The company's management expertise, large customer base, strong channels to market, and broad product offering have made PDC the domestic market leader in health care identification. The strengths of PDC, together with Brady's health care identification product offering, deep materials and printer expertise, and our global footprint, make this a very attractive business combination."

About Water Street

Water Street is a strategic private equity firm focused exclusively on health care. The firm has a strong record of building market-leading companies across key growth sectors in health care. It has worked with some of the world's leading health care companies on its investments including Gentiva, Johnson & Johnson, Medtronic and Smith & Nephew. Water Street's team is comprised of industry executives and private equity professionals with decades of experience investing in and operating global health care businesses. The firm is headquartered in Chicago. For more information about Water Street, visit waterstreet.com.

SOURCE Water Street Healthcare Partners