SterilMed, Inc. Sold to Great Hill Partners and Primus Capital Funds
Maple Grove, Minnesota, July 15, 2010 — SterilMed, Inc., a Minnesota-based healthcare cost containment company, has been acquired by Great Hill Partners and Primus Capital Funds. SterilMed is a leading reprocessor of single-use medical devices and a provider of small equipment repair services for healthcare providers across the United States and Canada.
Brian Sullivan, Chairman and CEO of SterilMed, stated, “We have built a very dynamic, fast growing company that delivers industry leading cost containment solutions to healthcare providers. Great Hill and Primus are significant healthcare investors who recognized the robustness of our growth trajectory and the additional opportunities we have to help healthcare providers control their costs.”
Since reprocessed devices typically cost 50% less than the cost of new devices, hospitals can save hundreds of thousands of dollars annually when they initiate a reprocessing program with SterilMed. SterilMed currently provides reprocessed devices and its repair services to over 1,700 healthcare facilities in North America, including sole-source contracts with three of the four largest hospital systems in the U.S.
Mark Taber, Partner at Great Hill, commented, "Uncompensated care and reimbursement pressures are creating unprecedented financial challenges for healthcare providers. SterilMed’s solutions offer immediate and meaningful cost savings to healthcare providers with no upfront investment, while simultaneously reducing their environmental waste.”
SterilMed, founded in 1997, is one of the pioneers of the medical device reprocessing industry. To comply with the FDA’s regulatory guidelines, the company has developed a range of proprietary reprocessing technologies and received 42 FDA 510(k) clearances. SterilMed also offers small equipment repair services and certified pre-owned equipment to broaden the range of cost containment solutions for healthcare providers.
Phil Molner, Partner at Primus, added, "SterilMed is an extremely well-run business that has grown rapidly and profitably over the past several years. Given our firm's focus on cost control and cost effectiveness within the healthcare sector, this investment makes perfect sense for us. We are very excited to partner with SterilMed to help them achieve their long-term goals.”
Brian Sullivan, who led an investment group that acquired a majority interest in the company in early 2003, will continue as Chairman of the Board. In conjunction with this transaction, Mark Taber, Matt Vettel and Philip Yates from Great Hill and Phil Molner from Primus will join the SterilMed Board of Directors.
SterilMed® offers services designed to help healthcare providers lower their medical device and equipment costs by maximizing the life of “single-use” medical devices, surgical instruments, power tools, endoscopes and video equipment. This allows healthcare facilities to free up critical financial resources through better device and equipment utilization while maintaining the highest levels of patient safety. SterilMed offers a uniquely integrated approach to medical device reprocessing that ensures the most streamlined logistics and the most rigorous quality approach enabling hospitals and medical facilities to reduce device cost and to decrease medical waste. SterilMed has saved healthcare providers hundreds of millions of dollars and thousands of tons of medical waste from landfills over the past few years. For more information, please visit www.sterilmed.com.
About Primus Capital Funds
Founded in 1983, Primus Capital Funds is a private equity firm that invests in high-growth companies within the healthcare, business services, and for-profit education industry sectors. Transaction types include management-led buyouts, recapitalizations, and primary investments of growth capital. For more information, please visitwww.primuscapital.com.
About Great Hill Partners
Great Hill Partners is a private equity firm that manages over $2.5 billion in capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the business and consumer services, healthcare, media, communications and software industries. For more information, please visitwww.greathillpartners.com.