Completes Sale of Wound Care Holdings LLC

RNS Number : 2185T

JZ Capital Partners Ltd

02 December 2011

 



JZ Capital Partners Limited

Completes Sale of Wound Care Holdings LLC

2 December 2011

JZ Capital Partners Limited (LSE:JZCP.L or "JZCP"), the London listed private equity fund that invests in high quality US and European micro cap companies, has realized its investment in Wound Care Holdings LLC ("Wound Care") through a sale to the National Healing Corporation.  

JZCP recovered a total of $83.4 million from this investment, representing a Multiple of Equity Invested of 2.0x, and an IRR of 14.4%. Given that JZCP had been writing up this investment over time, this sale represents a $6.0 million increase in NAV.

JZCP formed Wound Care in April 2006 in partnership with The Jordan Company LP and The Edgewater Funds to provide treatments to care for chronic wounds. Wound Care operates in a highly fragmented and underserved market. Demand for its services is driven by the growing number of people with chronic wounds, such as the elderly and diabetics, and the increased use of advanced treatments.

Wound Care consists of two separate business units, Diversified Clinics ("Diversified") and Sechrist Industries ("Sechrist").  Diversified is a leading outsourced provider of wound care clinic management services and works with more than 350 hospitals in the USA. Sechrist is the world's leading manufacturer of monoplace hyperbaric oxygen therapy chambers, a critical piece of equipment in comprehensive wound care centres and other respiratory care products.

As at 31 August 2011, Wound Care represented approximately 8% of JZCP's NAV and was one of the top three holdings in the portfolio by value.     

David Zalaznick, JZCP's Founder and Investment Adviser, said: "Wound care has been a significant investment in the portfolio for us and one that has helped achieve continued strong returns for our shareholders.  We worked closely with the management to help build the business through a combination of industry acquisitions and organic growth

"Wound Care has a tradition of providing excellent care and services and we are confident this will continue with the support of the National Healing Corporation. The merged company is well-positioned to serve and benefit from the continued growth of the chronic disease markets."

The National Healing Corporation, an industry leader in providing wound healing management for hospitals and turnkey hyperbaric oxygen services, is a portfolio company of Metalmark Capital. 

For further information:

Neil Doyle/ Ed Berry                                                                [phone] / 7297

Financial Dynamics

David Zalaznick                                                                       [phone]

Jordan/Zalaznick Advisers, Inc.

About JZCP

JZCP is a London listed private equity fund which invests in high quality US and European micro cap companies. Our objective is to achieve a superior overall return comprised of a current yield and significant capital appreciation. JZCP receives investment advice from Jordan/Zalaznick Advisers, Inc ("JZAI") which is led by David Zalaznick and Jay Jordan. They have worked together for 30 years and are supported by teams of investment professionals in New York, Chicago, London and Madrid. JZAI's experts work with the existing management of micro cap companies to help build better businesses, create value and deliver strong returns to our investors. JZCP also invests in mezzanine loans, first and second lien investments and other publicly traded securities. For more information please visit www.jzcp.com

 

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