With 10x Exit, Linden Plots New Effort

Linden LLC has landed a healthy return on an exit from an oral-care products company, netting 10x its investment in less than three years, a source familiar with the deal told Buyouts. The 10-bagger should help Linden’s forthcoming effort to raise a second fund.

Linden sold Ranir LLC to Kayak Holdings LLC, an investment group headed by Richard Kiphart, a principal at William Blair & Co. Ranir is a Grand Rapids, Mich.-based maker of store-brand consumer oral-care products sold at large retail chains such as Walgreens. Linden acquired the company in April 2005 for an undisclosed sum.

Linden and Kayak did not release the erms of the deal, and Linden declined to comment on our source’s return information.

Linden sold the company because it had accomplished most of its expansion initiatives, said Tony Davis, a managing director. During its hold period, Linden acquired manufacturing equipment and intellectual property that helped Ranir more efficiently make products; it broadened Ranir’s product line by acquiring exclusive worldwide licensing rights to products such as power toothbrushes; and it developed new products in-house such as a “Nite Protector” for people who grind their teeth at night.

As a result, Ranir’s revenue grew at double-digit rates annually and its EBITDA doubled under Linden, Davis said.

Linden plans to hit the fundraising circuit at the end of the year for a successor vehicle to the $200 million Linden Capital Partners LP, closed in 2006. The firm is still investing from its debut fund. Linden hasn’t yet settled on a target for the second fund.

Linden participates in a broad range of deal sizes, from $10 million to $2 billion. It invests in U.S. and Canada-based mature health care and life sciences companies in areas such as animal health products, health care services, hospital products and life science equipment.—B.V.