Done Deals: Madison Acquires Ophthalmic Co. –

New York-based private equity firm Madison Investment Partners last month acquired platform company RH Burton Co., a manufacturer of ophthalmic equipment, for an undisclosed amount. Key Bank provided the senior debt for the transaction.

Madison Investment will hold a majority stake in the company with two seats on the company’s board of directors.

“This is a company with a low operating history and a history of low profitability in a niche market,” said a source close to the firm. “That is how it fell into our radar screen.”

RH Burton is located in Columbus, Ohio, and manufactures and distributes ophthalmic equipment. The company’s revenue was approximately $12 million last year.

Equity for the transaction came out of Madison Investment Partners II LP, which is approximately 20% invested, said the source. “Some of the goals for the company include organic growth and strategic acquisitions,” he said.

In Fund-Raising Mode

Madison Investment held a first close on Madison Investment Partners II LP in February on $30 million (BUYOUTS Feb. 21, p. 10) with a focus on investments in small-to-middle market manufacturing, distribution and services businesses. Other investments already made with the fund include a $500,000 minority investment in FiberNet Telecom Group, a company that provides commercial “last mile” connections to commercial buildings like the Chrysler Building, a $2 million investment in AMI Telecom, and a $2 million investment in Califone International Holdings Inc.