Forms Innovatus Imaging Corporation
Resilience Capital Partners acquires three medical device service and manufacturing companies
September 07, 2017
by Lauren Dubinsky
, Senior Reporter
Resilience Capital Partners announced that it acquired three medical device service and manufacturing companies; one of which is the Multi-Vendor Service unit of Bayer’s radiology business.
The third-party ultrasound probe repair company Wetsco Inc. and specialty ultrasound manufacturer MD MedTech are also part of the transaction. The three combined businesses will form a new company called Innovatus Imaging Corporation.
“The creation of Innovatus Imaging through the acquisitions of MVS, Wetsco and MDMT gives us the scale and synergies to succeed in a market that is projected to grow by double-digit figures over the next five years, as health care providers are asked to do more with less and extend the life of costly medical devices through repair and servicing,” Steven H. Rosen, co-CEO of Resilience Capital Partners, said in a statement.
The company also has plans to purchase the European operations of MVS, which is based in the Netherlands, by the end of March. In the meantime, Innovatus Imaging has a transitional service agreement with Bayer to serve European customers.
The former president of Wetsco and CEO of MDMT, Dennis Wulf, was named CEO of the new company and is also a co-investor. The former general manager of MVS, Bill Kollitz, will serve as president and chief operating officer and the co-founder, COO and vice president of engineering for MDMT, Michael LaBree, will be the chief technology officer.
The three companies have formed strategic partnerships and customer relationships with each other over the years. Bassem Mansour, the other co-CEO of Resilience Capital Partners, stated that because of this, “it is a natural fit to combine them under a single company umbrella.”
MVS, which is a third-party repair business for radiology devices such as ultrasound probes and MR coils, frequently purchased ultrasound replacement parts from MDMT. Wetsco had an exclusive alliance with MVS since 2008 concerning repair and capability development on standard and 3-D/4-D probes.
Resilience Capital Partners invests in niche-oriented manufacturing, distribution and business service companies that have sustainable market positions. The company manages in excess of $625 million for its global investor base, which includes pension funds, insurance companies, foundations and endowments, fund of funds, and family offices.
In the past year, the company completed 12 transactions, and six additional ones in the past two years. Funding for the Innovatus Imaging transaction came from the Resilience Fund IV, which closed in October 2015 with $350 million in investable capital, and from co-investors like North Park Capital Partners.