Medical & Diagnostic Products

AbilityOne Corporation

Our team partnered with BISSELL Homecare to acquire AbilityOne in 2000. One year later, we partnered with Smith & Nephew to acquire its rehab division and merged it with AbilityOne.  The combination transformed AbilityOne into the global leader in rehabilitation products distribution. Our team assisted with the integration, recruited additional management team members and helped the team develop a corporate strategy for growth.  Patterson Companies, Inc., a leading supplier of dental and other healthcare products, purchased AbilityOne in 2003 to support its strategic plans for expansion.  As a business of Patterson, AbilityOne continues to be the world’s leading distributor of rehabilitation products.

 

Alpine Biomed

Water Street acquired Alpine Biomed in 2007, and simultaneously acquired Medtronic’s neurology diagnostic product line. We facilitated three more strategic acquisitions that built the company into a global specialty diagnostic device leader in the clinical gastroenterology and neurology markets.  Natus Medical acquired Alpine Biomed’s neurodiagnostic business in 2009 to solidify its position as the worldwide leader in neurology.  Given Imaging acquired Alpine’s gastrodiagnostic business in 2010 to strengthen its position as the global leader in the gastro esophageal market.

 

Facet Technologies

Water Street partnered with Matria Healthcare, Inc. to acquire Facet Technologies in 2006.  We transitioned Facet to an independent company and recruited to CEO a former Becton Dickinson executive with more than 20 years of experience in medical device manufacturing.  Water Street invested in Facet’s infrastructure and expanded its customer relationships to build it into the world’s largest microsampling sharps provider.  The company is now owned by Tower Three Partners, and continues to be the leading provider of lancets and lancing devices to the blood glucose monitoring and additional point-of-care testing markets.

Inovision Holdings

Our team’s acquisition of Lafayette Pharmaceuticals in 1994 served as the foundation for Inovision. Working with management, we helped Inovision acquire three additional product lines in 1995 and 1996. Inovision also acquired Victoreen and Keithly in 1998.  These acquisitions built Inovision into a leading developer, manufacturer and distributor of barium sulfate contrast agents and radiation measurement devices. The company became known for offering the broadest spectrum of leading–edge products and maintenance services to diagnostic imaging markets around the world. Tyco International purchased the Lafayette business from Inovision in 2000 and Syncor bought the company’s additional businesses in 2001.

Kendro Laboratory Products

The Water Street team partnered with DuPont to purchase its SORVALL division in 1996.  Two years after our investment, our team merged SORVALL with the laboratory instruments division of Heraeus to form Kendro Laboratory Products.  It was a transformational combination that created a global leader in products and services to the laboratory life sciences and drug discovery markets.   SPX Corporation, a multi-industry manufacturing leader, bought the company from us in 2001 to expand its life sciences business.  Kendro’s products continue to support research scientists around the world with preparing samples for experimentation.

 

LifeStream International

The Water Street team completed three simultaneous investments to form LifeStream in 1999. We merged the assets of the cardiopulmonary division of C.R. Bard, Inc., certain assets of the cardiosurgery business of Minntech Corporation, and privately-held Surgimedics, Inc.  The combination created a market leader in cardiopulmonary products.    Terumo Corporation, one of the world’s leading medical device manufacturers, bought LifeStream in 2002 to increase its share of the global cardiac surgery products market.

Medex, Inc.

Our team simultaneously invested in Medex, Inc., a provider of system solutions for critical care, to acquire the Jelco I.V. catheter business of Ethicon Endo-Surgery, a Johnson & Johnson company.  The combination transformed Medex into the market leader in fluid and drug delivery in critical care.  It also expanded the company’s global footprint and customer base.  Smiths Medical bought Medex in 2005 to strategically expand its safety critical systems and products.  Medex continues to be one of the world’s leading critical care companies.

Medical Specialties Distributors

Water Street invested in Medical Specialties Distributors (MSD) in 2010 after management recommended our firm as the preferred buyer.  Over the next three years, we partnered with management to build MSD into the leading distributor and solutions provider to the alternate-site home infusion therapy market. We leveraged our expertise and network of contacts to expand MSD’s relationships with multi-site healthcare providers and suppliers.  In 2013, we helped MSD acquire Medical Technology Resources to expand its national footprint and create a stronger growth platform long-term.  Today, MSD serves more than 4,000 customers with a total enterprise solution encompassing products and value-added services.  The company has achieved double-digit organic revenue annually over the course of our partnership.  In 2013, New Mountain Capital acquired MSD to further build on the company’s strong foundation.

Precision Dynamics Corporation

Water Street invested in Precision Dynamics Corporation (“PDC”) in 2007 when the company specialized in healthcare identification wristbands. Our team partnered with the founders and management team to execute a strategic plan that transformed PDC into a global leader in patient safety identification products.   In 2009, our team helped PDC acquire TimeMed Labeling Systems, Inc. to expand into healthcare 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 healthcare wristbands, specialty labels and identification solutions.  The merger enabled PDC to offer the healthcare industry’s most comprehensive set of products and services to accurately identify patients, label clinical specimens, track medications and monitor treatments. Brady Corporation (NYSE: BRC), a world leader in a broad range of identification solutions, purchased PDC in 2012 to expand its presence into the healthcare market.

Specialty Distribution

AbilityOne Corporation

Our team partnered with BISSELL Homecare to acquire AbilityOne in 2000. One year later, we partnered with Smith & Nephew to acquire its rehab division and merged it with AbilityOne.  The combination transformed AbilityOne into the global leader in rehabilitation products distribution. Our team assisted with the integration, recruited additional management team members and helped the team develop a corporate strategy for growth.  Patterson Companies, Inc., a leading supplier of dental and other healthcare products, purchased AbilityOne in 2003 to support its strategic plans for expansion.  As a business of Patterson, AbilityOne continues to be the world’s leading distributor of rehabilitation products.

 

Inovision Holdings

Our team’s acquisition of Lafayette Pharmaceuticals in 1994 served as the foundation for Inovision. Working with management, we helped Inovision acquire three additional product lines in 1995 and 1996. Inovision also acquired Victoreen and Keithly in 1998.  These acquisitions built Inovision into a leading developer, manufacturer and distributor of barium sulfate contrast agents and radiation measurement devices. The company became known for offering the broadest spectrum of leading–edge products and maintenance services to diagnostic imaging markets around the world. Tyco International purchased the Lafayette business from Inovision in 2000 and Syncor bought the company’s additional businesses in 2001.

Kendro Laboratory Products

The Water Street team partnered with DuPont to purchase its SORVALL division in 1996.  Two years after our investment, our team merged SORVALL with the laboratory instruments division of Heraeus to form Kendro Laboratory Products.  It was a transformational combination that created a global leader in products and services to the laboratory life sciences and drug discovery markets.   SPX Corporation, a multi-industry manufacturing leader, bought the company from us in 2001 to expand its life sciences business.  Kendro’s products continue to support research scientists around the world with preparing samples for experimentation.

 

Medical Specialties Distributors

Water Street invested in Medical Specialties Distributors (MSD) in 2010 after management recommended our firm as the preferred buyer.  Over the next three years, we partnered with management to build MSD into the leading distributor and solutions provider to the alternate-site home infusion therapy market. We leveraged our expertise and network of contacts to expand MSD’s relationships with multi-site healthcare providers and suppliers.  In 2013, we helped MSD acquire Medical Technology Resources to expand its national footprint and create a stronger growth platform long-term.  Today, MSD serves more than 4,000 customers with a total enterprise solution encompassing products and value-added services.  The company has achieved double-digit organic revenue annually over the course of our partnership.  In 2013, New Mountain Capital acquired MSD to further build on the company’s strong foundation.

Outsourced Healthcare Services

ConVerge Diagnostic Services

Water Street invested in ConVerge in 2009 and recruited an experienced management team spearheaded by Bob Gorman, a 20-year laboratory services veteran.  Together, we built ConVerge into a leading reference laboratory recognized by healthcare providers for its innovation, high-touch customer service and expertise in women’s health across the greater New England region. With Bob’s leadership, we expanded ConVerge’s test menu and invested in strategic initiatives to enhance its capabilities. We also engaged our network of executive relationships to support ConVerge with growing its customer base through partnerships with leading health systems, hospitals, physician groups and universities.  Quest Diagnostics (NYSE: DGX), the world’s leading provider of diagnostic information services, purchased ConVerge from Water Street in 2013 to supports its growth strategy in New England.

 

Physiotherapy Associates

Water Street partnered with Stryker Corporation (NYSE: SYK) to acquire Physiotherapy Associates in 2007. Shortly thereafter, we merged the business with Benchmark Medical. It was a transformational combination that propelled Physiotherapy Associates into an industry-leadership position. Water Street tapped our industry network to recruit a highly talented managegment team. Together, we helped the company achieve optimal performance and executed a strategic growth plan that established Physiotherapy Associates as the nation’s foremost provider of outpatient rehabilitation services. In 2012, we divested the company to a strategic growth investor who is focused on further expanding its leadership position. Physiotherapy Associates continues to be one of the only providers that can offer high-quality, consistent care on a national scale.

PLUS Diagnostics

Water Street invested in PLUS Diagnostics in 2006 when it was a regional laboratory specializing in urology. We recruited an industry-leading executive team and board led by Tim Brodnik, the former president and CEO of American Medical Laboratories. Together, we tranformed PLUS into a national anatomic pathology leader offering a comprehensive menu of diagnostic services.  Water Street invested our team’s industry experience and network or resources to support PLUS with opening bi-coastal laboratories, introducing innovative new tests and recruiting an experienced team of nationally recognized pathologists.  In seven years, PLUS tripled its laboratory capacity and expanded its capabilities into dermatopathology, hematopathology, and gastrointestinal and genitourinary pathology.  Miraca Life Sciences acquired PLUS in 2013 to become the largest independent pathology company in the United States.

 

Specialty Pharmaceutical Products & Services

AAIPharma Services

Water Street acquired AAIPharma Services Corp. in 2009 when it was a division of a global corporation and transitioned it to a standalone company. We tapped our global pharmaceutical network to recruit an executive team with years of drug development experience.   Together with management, Water Street created and executed a strategic expansion program that transformed AAIPharma into a leading independent provider of pharmaceutical development services.   With Water Street’s support, AAIPharma opened a 40,000-square foot technology center, expanded its manufacturing centers and completed a market-leading acquisition that extended its capabilities into the growing material testing services market. In 2013, Cambridge Major Laboratories Inc. (“CML”) acquired AAIPharma from Water Street  to form one ofthe world’s leading providers of integrated chemistry, manufacturing and controls (CMC) services.

 

 

 

 

OraPharma

Water Street acquired OraPharma from Johnson & Johnson. Our team transformed the business into a standalone company and recruited a highly talented management team spearheaded by CEO Janet Vergis. We leveraged our team’s extensive experience and deep expertise in the pharmaceutical sector to accelerate OraPharma’s growth, improve profitability, and advance attractive new product and market opportunities. Together with management, we built OraPharma into a leading oral health pharmaceutical company. In 2012, Valeant Pharmaceuticals, one of the world’s leading specialty pharmaceutical companies, purchased OraPharma from Water Street.