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Hennessy & Simmons LLC (“CHS”)
announced today that it has made a majority equity investment
in Suture Express, Inc. (“Suture Express”), a
rapidly growing distributor of sutures and other wound closure
products for acute care hospitals and surgery centers across
the United States. The equity investment in Suture Express
represents a partnership between CHS, Linden, LLC, a healthcare
and life sciences private equity firm, and Suture Express
senior management.
Suture Express offers over 1,200 acute
care hospitals, ambulatory surgery centers and other customers
a comprehensive assortment
of more than 5,000 wound closure SKUs with no minimum order
size, no required frequency of order and guaranteed next-day
delivery for most orders. Orders are processed and fulfilled
out of a single facility in Lenexa, Kansas. Jim Vaughn, Vice President of Sales, said, “My co-founders
and I formed Suture Express in 1998 because we believed there
was an opportunity to relieve the headache of sutures procurement
at acute care hospitals and ambulatory surgery centers across
the U.S. Today, we offer the most cost-efficient distribution
model in the industry. With the infusion of growth capital
and the resources and expertise of CHS, we hope to expand
our product line and supplier base to satisfy more of our
customers’ needs.”
Tom Formolo, Partner at CHS, said, “Its unique business
model allows Suture Express to offer customers the lowest
distributor mark-up and best service levels in the industry
for the products it sells. With an exclusive focus on high
cost, low cube, low weight items that can be delivered efficiently
overnight with minimal overhead, Suture Express provides
a straightforward, low-cost alternative to a complex and
often inefficient procurement model. We look forward to helping
Suture Express expand its activities to capture a larger
share of its customers’ procurement needs.”
The investment in Suture Express complements CHS’ portfolio
of investments in the distribution industry, which currently
includes Beacon Roofing Supply, Inc. (Nasdaq: BECN), a distributor
of residential and commercial roofing products; The Hillman
Group, a distributor of fasteners, key blanks, signage and
other small hardware components; Hoboken Wood Flooring Corporation,
a distributor of hard surface flooring; Home Acres Building
Supply Co., a distributor of gypsum wallboard in the Upper
Midwest; Houston Wire and Cable Company (Nasdaq: HWCC), a
distributor of specialty wire and cable; Kranson Holdings,
Inc., a distributor of rigid packaging solutions; SunSource,
a distributor of fluid power products and systems; and TruckPro,
Inc., a distributor of aftermarket parts and accessories
for heavy-duty vehicles.
CHS is a Chicago-based private equity firm
specializing in private equity investments and recapitalizations
of middle market companies in partnership with management.
CHS has formed five private equity funds and currently manages
over $2.5 billion of capital. Funds for CHS’ investment
in Suture Express come from CHS Private Equity V LP, a $1.3
billion investment fund formed in 2005. Linden,
LLC (“Linden”) is a
Chicago-based private equity group focused exclusively on
the healthcare and life
science industries. Linden’s strategy is based upon
three key elements: i) a healthcare industry specialization,
ii) an Operating Partner-focused model, and iii) a foundation
of corporate relationships. For additional information
about Linden, please visit www.lindenllc.com. For more information on Suture Express, please refer to
the company’s Web site at www.sutureexpress.com. |