NewsJune 12, 2012
Norwest Equity Partners Acquires Pentec Health
Leading Specialty Infusion Services Company Poised for Continued Growth Within Healthcare Market
Minneapolis, Minnesota – Norwest Equity Partners (“NEP”), a leading middle market investment firm, announced today that it has acquired Pentech Holdings, Inc. (“Pentec” or the “Company”) from DW Healthcare Partners, Frazier Healthcare and Pentec management. Pentec is a leading national provider of specialty infusion services to patients who require access to complex pharmaceutical products and services outside of the hospital setting.
Pentec Chairman and CEO, Joe Cosgrove, commented, “I am extraordinarily pleased to embark on a new phase of Pentec’s growth strategy with such an outstanding partner as NEP. We are fortunate to have forged a relationship with an organization that shares our commitment to patient-centric healthcare as well as our vision for continued pursuit of excellence and market leadership. NEP’s 50- year history and experience in the healthcare sector, coupled with continued investment participation and support from DW and Frazier bodes well for ushering in an exciting time for our company. I am also encouraged by the continued personal and financial investment and dedication exhibited by Pentec’s senior management team. As a result of our collaboration with NEP, we anticipate a most promising and productive future.”
For nearly 30 years, Pentec has been a leading specialty infusion pharmacy focused on providing innovative and proprietary nutritional therapies for patients suffering from chronic renal failure and highly complex therapies for patients with intrathecal pumps. The Company operates two primary divisions, Renal and Specialty Infusion (“SI”).
The Renal division delivers proprietary and patent-pending therapies, including PROPLETE, which are designed to address issues of protein malnutrition in patients suffering from End Stage Renal Disease. With the introduction of PROPLETE in 2008, Pentec has become the innovation leader in the renal nutrition therapy market, offering a product which delivers superior clinical outcomes compared to those achieved by traditional therapies, which have remained virtually unchanged through the years.
Pentec’s Joint-Commissioned-accredited SI division is the largest and most sophisticated provider of pain and spasticity management home infusion therapy. Employing a highly differentiated nursing model and 24-hour support services 365-days a year, the SI division positions Pentec as the only provider in the U.S. to offer this level of patient care and physical support for patients with intrathecal pumps. In addition to patient-direct support, the SI division also partners with physicians to help them better care for their patients, offering real-time patient interaction and feedback via robust technology systems.
Tim Kuehl, a Partner at NEP and Pentec board member, stated, “On behalf of the NEP partnership, we are excited to partner with Joe and his management team on this investment. As the largest provider of these specialized products and services in its market, Pentec has earned and built a tremendous reputation among its customers and referring physicians and clinicians. Joe is a terrific leader who has been able to capitalize on aggressive growth opportunities, and we are confident that there is a lot more of that to come in the future.”
Pentec’s track record of financial performance and growth across both of its divisions has been consistent and strong for several years. Inc. magazine recognized Pentec as one of the 5,000 fastest-growing private companies in America in both 2010 and 2011.
Jason Sondell, a Director at NEP and Pentec board member, stated, “This investment is a testament to NEP’s healthcare investment strategy of partnering with profitable and growing companies with strong business models and management teams. Pentec is a world-class operation run by a best-in-class management team that has broad and deep experience leading pharmaceutical and healthcare businesses. With its unmatched capabilities, therapies, and services, Pentec is poised to continue to grow both organically through increased penetration within its growing markets, and through acquisitions of companies in both existing and adjacent markets.”
Additional financing for this transaction was provided by Norwest Mezzanine Partners, Madison Capital Funding, Golub Capital, Zions Bank, and CIT Group.
Simultaneous to the close of the transaction, Cosgrove assumed the role of Chairman of the Board of Directors in addition to his CEO role. Pentec employs nearly 300 people and is headquartered in Boothwyn, Pennsylvania. More information can be found on www.pentechealth.com.
Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.