First Chicago Equity Capital and Garrett Capital Advisors Create Partnership to Invest in Health Care and Life Sciences Companies
First Chicago Equity Capital and Garrett Capital Advisors Create Partnership to Invest in Health Care and Life Sciences Companies
January 19, 1999
CHICAGO, January 19, 1999 - Blending expertise in health-care company management and middle-market investing, First Chicago Equity Capital and Garrett Capital Advisors LLC today announced the creation of an exclusive partnership to pursue investments in health care and life sciences. Their goal is to develop leadership companies within selected industry segments.
The partnership will be led by Scott Garrett, chief executive of Garrett Capital Advisors, who has 25 years of experience in global health-care companies, including senior management positions at Dade Behring Inc. and Baxter International.
"The unprecedented changes in this industry are creating significant opportunities to build a portfolio of leadership companies in health care and life sciences," Garrett said. "We expect to identify several acquisition candidates as large global companies look to divest corporate orphans -- divisions or subsidiaries that no longer fit their corporate parents strategic focus. This is especially true of medical-device businesses, which often have been starved for capital because their parent companies have concentrated investments in core strategic businesses such as pharmaceuticals."
"Partnering with Scott Garrett will significantly help us expand our investment initiatives in health care and life sciences," said Eric C. Larson, managing general partner of First Chicago Equity Capital. "Together, we will help our portfolio companies increase sales and profitability while establishing market leadership. Our expertise in completing transactions quickly and efficiently makes us attractive to companies divesting divisions or subsidiaries."
The partnership is targeting companies that market differentiated medical devices, analytical instruments and clinical diagnostic equipment. Fields of specific interest include cardiovascular medicine, urology, surgical instruments and devices, orthopedics and blood products. Target companies will have annual revenue of at least $25 million, positive cash flow and prospects for significant growth and market-share expansion within fragmented and consolidating markets.
Garrett and Larson said their initial goal is to assemble a portfolio of three to six companies. First Chicago Equity Capital and Garrett have met recently with several investment banks that have expressed interest in working with the new partnership. After companies are acquired, the partnership will work with management teams to build value, leveraging a network of affiliates and consultants to assist in areas such as new-product development, sales productivity and manufacturing efficiency.
Garrett, 48, led the formation of Dade Behring Inc. and its growth into the world's third-largest clinical diagnostics company through the leveraged buyout of the diagnostics business of Baxter International and the acquisition of the diagnostics businesses of DuPont and Hoechst AG. During his tenure as chairman and chief executive officer from 1994 to 1997, Dade Behring's revenue grew from approximately $600 million to almost $1.3 billion.
Prior to joining Dade Behring, Garrett served in executive positions with Baxter in the United States and Europe and with American Hospital Supply Corporation. He holds a B.S. in mechanical engineering from Valparaiso University and an MBA from Lake Forest Graduate School of Management. He serves on the boards of directors of Dade Behring, Sunol Molecular Inc., Clinical Micro Sensors Inc., Biotrin Holdings PLC and the Lake Forest Hospital Foundation.
Founded in 1958, First Chicago Equity Capital is among the largest and oldest institutional private equity investors in the world and is a leading acquirer of corporate divisions and subsidiaries. It also builds existing portfolio companies in targeted industries, including health care and life sciences, business services, precision instruments and specialty foods. Since 1995, the company has made acquisitions totaling more than $500 million in 13 targeted sectors. First Chicago Equity Capital is the private equity investment group of BANK ONE CORPORATION (NYSE: ONE), the nation's fifth largest bank holding company, with assets of more than $235 billion.
The partnership will be led by Scott Garrett, chief executive of Garrett Capital Advisors, who has 25 years of experience in global health-care companies, including senior management positions at Dade Behring Inc. and Baxter International.
"The unprecedented changes in this industry are creating significant opportunities to build a portfolio of leadership companies in health care and life sciences," Garrett said. "We expect to identify several acquisition candidates as large global companies look to divest corporate orphans -- divisions or subsidiaries that no longer fit their corporate parents strategic focus. This is especially true of medical-device businesses, which often have been starved for capital because their parent companies have concentrated investments in core strategic businesses such as pharmaceuticals."
"Partnering with Scott Garrett will significantly help us expand our investment initiatives in health care and life sciences," said Eric C. Larson, managing general partner of First Chicago Equity Capital. "Together, we will help our portfolio companies increase sales and profitability while establishing market leadership. Our expertise in completing transactions quickly and efficiently makes us attractive to companies divesting divisions or subsidiaries."
The partnership is targeting companies that market differentiated medical devices, analytical instruments and clinical diagnostic equipment. Fields of specific interest include cardiovascular medicine, urology, surgical instruments and devices, orthopedics and blood products. Target companies will have annual revenue of at least $25 million, positive cash flow and prospects for significant growth and market-share expansion within fragmented and consolidating markets.
Garrett and Larson said their initial goal is to assemble a portfolio of three to six companies. First Chicago Equity Capital and Garrett have met recently with several investment banks that have expressed interest in working with the new partnership. After companies are acquired, the partnership will work with management teams to build value, leveraging a network of affiliates and consultants to assist in areas such as new-product development, sales productivity and manufacturing efficiency.
Garrett, 48, led the formation of Dade Behring Inc. and its growth into the world's third-largest clinical diagnostics company through the leveraged buyout of the diagnostics business of Baxter International and the acquisition of the diagnostics businesses of DuPont and Hoechst AG. During his tenure as chairman and chief executive officer from 1994 to 1997, Dade Behring's revenue grew from approximately $600 million to almost $1.3 billion.
Prior to joining Dade Behring, Garrett served in executive positions with Baxter in the United States and Europe and with American Hospital Supply Corporation. He holds a B.S. in mechanical engineering from Valparaiso University and an MBA from Lake Forest Graduate School of Management. He serves on the boards of directors of Dade Behring, Sunol Molecular Inc., Clinical Micro Sensors Inc., Biotrin Holdings PLC and the Lake Forest Hospital Foundation.
Founded in 1958, First Chicago Equity Capital is among the largest and oldest institutional private equity investors in the world and is a leading acquirer of corporate divisions and subsidiaries. It also builds existing portfolio companies in targeted industries, including health care and life sciences, business services, precision instruments and specialty foods. Since 1995, the company has made acquisitions totaling more than $500 million in 13 targeted sectors. First Chicago Equity Capital is the private equity investment group of BANK ONE CORPORATION (NYSE: ONE), the nation's fifth largest bank holding company, with assets of more than $235 billion.