Excellere eyes healthy return from medical supplier

The Denver-based firm will sell medication packaging company MTS for $156m three years after taking the business private for $47m, including debt.

Excellere Partners, a Denver-based mid-market firm, will sell MTS Medication Technologies for $156 million, three years after taking the company private for $47 million, including the assumption of debt. It is the company's third exit.

NASDAQ-listed healthcare company Omnicell has agreed to purchase the business, which Excellere acquired in 2009. MTS, which makes medication adherence packaging systems, recorded approximately $75 million of revenue and $12 million of earnings before interest, tax, depreciation and amortisation during the 12-month period ending 31 March 2012, according to a company statement.

The sale is expected to close late in the second quarter or early in the third quarter 2012.

The original investment in MTS was made from Excellere’s debut fund, which closed in 2007 with $265 million of commitments from limited partners including the Los Angeles County Employees’ Retirement Association, Allstate Investments and New York Life Insurance Company. The fund has invested in eight companies, from which the firm has completed two complete exits and two recapitalisations.

Excellere raised its $465 million second fund in just six weeks, holding a final close in December 2010. UBS acted as placement agent for the fund, which Excellere activated in October 2011. The firm has yet to make its first investment from Fund II.

Excellere focuses on the healthcare, specialty foods, industrial technology and services, business services and education and training sectors.  Previous healthcare-related investments include post-secondary healthcare education provider MedTech College, home infusion therapy company AxelaCare and outpatient urgent care provider MedExpress – which Excellere sold to Sequoia Capital and General Atlantic in 2010.

Excellere focuses on buyouts and majority recapitalizations of businesses with sales between $25 million and $100 million. The firm was founded in 2006 by managing partners Ryan Heckman, Robert Martin and David Kessenich, all of whom previously worked at Denver-based mid-market firm KRG Capital Partners.