International Granville Exits Adams Healthcare –

Granville Baird Capital Partners investment in the management buyout of the health-care division of DePuy International, subsequently renamed Adams Healthcare, in April 1997 has been realized following the sale of the business to Manchester-based Medical Solutions. Granville Baird received GBP9.3 million in cash almost twice its original investment of GBP5 million and 6.45 million shares in Medical Solutions as part of the sale terms. Adams Healthcare’s business encompasses pharmaceuticals, surgical instruments and GP mail order.

Bank of Scotland in Leeds provided GBP4.25 million in debt and working capital facilities in support of Granville Baird’s original GBP5 million equity investment. KPMG and Hammond Suddards advised the management team, while Dibb Lupton Alsop advised Granville Baird and Eversheds advised Bank of Scotland.

Adams Healthcare began in 1906 when Charles Thackray began manufacturing pharmaceuticals for his pharmacy in Leeds, and the surgical instruments part of the business was set up in 1918. In 1990 the company was acquired by DePuy, which was primarily interested in the company’s orthopaedic business that had been developed in the 1960s.

At the time of the management buyout the management team was advised by KPMG with legal advisers Hammond Suddards, Eversheds and Dibb Lupton Alsop. Legal counsel for DePuy International was Allen & Overy. Andrew Ferguson was the director at Granville Baird leading the realization.

Medical Solutions paid a total of GBP13.5 million for Adams Healthcare by raising GBP20.7 million in a placing and open offer to finance the acquisition and further expansion. The sale of Adams Healthcare to Medical Solutions is classed as a reverse takeover with Medical Solutions shares being admitted onto the London Stock Exchange official list in May.

Rod Adams, who led the management buyout from DePuy International, becomes chief operating officer and Andrew Longstaffe, who was finance director of Adams Healthcare, becomes finance director and company secretary of Medical Solutions.

Granville Baird’s other investments in the health-care sector include Healthcare Scotland, which was realized in July last year via a GBP6.8 million management share buyback that valued the company at GBP15 million, Ultralase, an investment of GBP3.65 million made in January this year as part of a management buyout of the laser eye surgery business, and, an autumn 1999 investment of GBP650,000 which more correctly fits into the e-healthcare space since it is a secure medical and educational Web site for the medical profession. –