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 THE RESULT: Caymus Partners was the exclusive advisor to Microtek Medical Holdings, Inc. (Nasdaq: MTMD) (“Microtek” or the “Company”) in its acquisition of Plasco, Inc., a privately held manufacturer of medical products. In working closely with the Company’s senior management team, Caymus Partners conducted detailed due diligence on the Company and advised Microtek on the appropriate purchase price and consideration of the transaction. The target company was located as part of an exhaustive search in which Caymus Partners identified over 100 domestic and international acquisition targets that fit within the Company’s expansion strategy. Caymus Partners also worked with senior management on the construction of a formal investor presentation.
“Caymus Partners was invaluable in helping us locate acquisition targets and complete the Plasco transaction at a very attractive valuation. Having limited internal resources to dedicate to an acquisition process, Microtek relied on Caymus Partners to fill that void with hard work executed in a very professional manner. Their attention to our company, markets and products led to a broad understanding of our business and external growth options. It was a pleasure to work with Caymus Partners.”
Dan Lee, Chairman, President & CEO
Microtek Medical Holdings, Inc.
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Company Description
Microtek specializes in the design, manufacture and marketing of an extensive range of innovative and high quality infection control, fluid control products, safety products, and other products to healthcare professionals for use in environments such as operating rooms and ambulatory surgical centers. The Company’s primary products consist of disposable equipment drapes and specialty patient drapes.
Client Objective
Microtek was seeking external growth alternatives to accelerate revenue growth and earnings and build shareholder value through acquisitions of domestic and international companies. Specifically, Microtek was searching for product lines that were complementary to the Company’s existing product offerings and that would contribute to a much broader product offering to the Company’s targeted customer base.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Identified Acquisition Targets. Caymus Partners identified more than 100 acquisition targets, domestic and international, of a size range and product breadth that would accelerate Microtek’s revenue and earnings growth;
- Analyzed Target Companies. Through detailed discussions with owners of numerous prospective targets, Caymus Partners analyzed target company product offerings, financial performance and purchase price expectations. As a result of these discussions, Caymus Partners made formal recommendations to Microtek on which target companies to pursue;
- Conducted Detailed Due Diligence. Caymus Partners conducted detailed due diligence on the Plasco acquisition, including an analysis of Plasco’s post-transaction financial performance, transaction integration costs, revenue synergies and purchase price consideration; and
- Recommended and Negotiated Purchase Price. Based on discussions with the acquisition target, Caymus Partners worked closely with senior management to determine a viable purchase price range and assisted with the purchase price negotiations and definitive documentation.
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