Riverside buys healthcare platform company

The US mid-market firm has purchased disposable medical products maker Coeur in its 26th deal this year. The investment was made from its fifth fund, currently raising $900m.

The Riverside Company has paid an undisclosed price for Coeur, a manufacturer of single-use disposable medical products like syringes and tubing.

The investment was sourced by Riverside origination executive Jim Butterfield, led by Riverside partner Steve Dyke and made from the firm’s Capital Appreciation Fund V, which is raising $900 million and held a second close on roughly $550 million in July. US Bank provided senior debt for the deal while Babson Capital provided mezzanine financing.

The mid-market firm plans to grow Coeur via an aggressive add-on strategy. It is the 15th platform healthcare company Riverside has acquired, the third portfolio company for Fund V and its 26th deal to date in 2008.

Headquartered in Lebanon, Tennessee, Coeur’s client base includes diagnostic imaging and medical device equipment makers, medical products distributors, hospitals and imaging centers and medical kit and procedure tray manufacturers. It has four US patents, with 10 more pending as well as nine pending internationally.

Riverside has 18 offices worldwide and a team of more than 180 professionals. It said six out of nine Riverside funds considered mature vintages are currently top quartile.