Lake Forest, Illinois-based RoundTable Healthcare Partners has acquired a majority interest in Excelsior Medical Corp.
Terms of the deal were not disclosed. Excelsior, based in Neptune, New Jersey, manufactures pre-filled flush syringes and syringe pump systems, which include syringe infusion pumps, dispensing pumps, tubing, thermal label printers, labels and accessories. The company sells most of its products to the US and a small portion to Canada; Excelsior will serve as a platform for subsequent acquisitions in the sector.
Roundtable founding partner Jack McGinley led the deal and will serve as Excelsior's chairman. He said that because of a shortage of hospital nurses and pharmacists who usually prepare syringes for injections, there has been a big move among hospitals to use pre-filled syringes. McGinley said low market penetration of the syringe industry, worth between $700 million and $1 billion, presents an opportunity for RoundTable to expand Excelsior's product offerings.
The Excelsior purchase happens in the wake of RoundTable's successful $565 million (€461 million) exit of Canadian generic pharmaceutical manufacturer Sabex to Sandoz, a division of Swiss drug giant Novartis. According to RoundTable founding partner Lester Knight, the sale of Montreal-based Sabex – which manufactures injectable generic drugs, such as morphine, to hospital pharmacies in both the US and Canada – returned about 8.2 times the original investment.