RoundTable Healthcare Partners, a Lake Forest private equity firm, on Tuesday said it has acquired a majority stake in Excelsior Medical Corp., a manufacturer of pre-filled flush syringes.
Company officials declined to discuss the financial terms of the deal. New Jersey-based Excelsior, which is privately held, rings up annual sales of about $35 million, according to RoundTable partner Jack McGinley.
RoundTable will have full control of the company and Mr. McGinley will take the reigns as Excelsior's chairman. Excelsior's management team will remain intact because RoundTable will " need additional management to support their activities," he said.
With hospitals facing staffing pressures, the pre-filled syringe market represents a lucrative opportunity, Mr. McGinley said. Use of such devices enables nurses and other hospital staff to spend more time treating patients.
With each syringe selling for 40 cents to 45 cents, based on sales of 700 million units, the estimated market for the product could reach $280 million to $315 million annually. Mr. McGinley said, "sales are skyrocketing" and projects the company will continue to grow around 20% a year.
RoundTable is a private equity firm with various health care holdings.