NYS Pension Fund Part of $425 Million Investment in
Glens Falls Manufacturing Company
The New York State Common Retirement Fund (the Fund) invested $22 million in a $425 million private equity investment to purchase a medical supplies manufacturer, whose sole manufacturing plant is located in Glens Falls, NY, from Boston Scientific Corporation, State Comptroller Thomas P. DiNapoli announced today.
The private equity deal purchased Boston Scientific Corporation’s Fluid Management (NAMIC) and Venous Access (VA) businesses, creating NAMIC/VA, Inc. The company currently has 750 employees, more than 80 percent of its workforce, at its Glens Falls facility.
“Our investment in NAMIC/VA is a perfect example of how our In-State Private Equity Program can do well for the pension fund while doing good for businesses in New York State,” DiNapoli said. “We are continuously looking for investment opportunities that benefit both local communities like Glens Falls and New York’s retirees.”
Through its In-State Private Equity Program, the Fund made the investment through the program’s investment partner Credit Suisse Customized Fund Investment Group. The Fund’s investment was part of $230 million in private equity raised to purchase the businesses. The majority of private equity capital was invested by Avista Capital Partners. Avista, the Fund and other equity co-investors, contributed more than 50 percent of the $425 million in total capitalization required to complete the acquisition of the NAMIC and VA assets. The additional money for the acquisition came from debt financing.
“This infusion of capital from the New York State Common Retirement Fund, Avista Capital Partners and the Customized Fund Investment Group will help NAMIC/VA deepen its roots in Glens Falls and help our business grow,” said Ron Sparks, CEO of NAMIC/VA.
“We strongly believe in NAMIC's growth prospects and the investment opportunity we pursued on behalf of the News York State pension fund,” Michael Arpey, Co-Head of the Customized Fund Investment Group at Credit Suisse, said. “NAMIC has exceptional potential for growth in its markets and has a competitive advantage in the sector through its world-class facility in Glens Falls, NY where it manufacturers its Venous Access products and other fluid management devices. The Fund’s investment will be key to the company’s continued leadership, while also serving an important role in the community.”
“We are very excited about this business. NAMIC has exceptional brands, strong customer relationships and a cutting-edge manufacturing facility at Glens Falls,” Avista’s CEO and Co-Managing Partner Thompson Dean said. “The VA business has a knowledgeable sales force, robust R&D capabilities and a strong new product introduction track record which should continue to propel organic growth.”
The Fluid Management franchise, formerly North American Medical Instruments Corporation (NAMIC), produces a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures. The Fluid Management franchise employs approximately 750 people in its Glens Falls, NY manufacturing facility. NAMIC products constitute approximately 70 percent of all manual fluid management products sold in the United States.
The Venous Access franchise, whose products are also manufactured in Glens Falls, offers a leading portfolio of implantable devices designed to provide access to the blood stream for patients requiring intravenous antibiotics, nutrition, chemotherapy and blood sampling. The Venous Access franchise was part of Boston Scientific’s Oncology business, and employs approximately 150 people at its Marlborough, MA based headquarters and other locations around the United States.
Through its in-state private equity program, the Fund invests with private equity managers who seek to invest in companies in New York State that require capital for growth. The program, created in 1999, targets investment of state funds in the New York State economy. The program is designed to provide investment returns consistent with the risk of private equity while also expanding the availability of capital for New York businesses. The program aims to help generate jobs and private sector investment in the state.
Since 2000, $288 million has been invested in 110 companies through the in-state program. DiNapoli has committed an additional $408 million to the program since he took office a year ago, bringing the total amount committed to the program to $861 million.
About the Common Retirement Fund
The $154.5 billion New York State Common Retirement Fund is the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from state and local governments. Comptroller DiNapoli is the sole trustee of the Fund and manages a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments.
About Credit Suisse Customized Fund Investment Group
Credit Suisse Customized Fund Investment Group (CFIG) is one of the leading managers of private equity fund investment and co-investment programs, managing more than $20 billion of commitments on behalf of its clients. CFIG specializes in designing tailored portfolios for investors who are seeking customized solutions for their private equity investment needs.
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with offices in New York and Houston, TX. Founded in 2005, Avista manages $2 billion in private equity capital. Avista’s strategy is to make controlling or influential minority investments primarily in growth-oriented media, healthcare and energy companies. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. For more information, visit www.avistacap.com.