Weigao International Medical Hong Kong Limited and its joint venture partner completed the acquisition of Argon Medical Devices Holdings, Inc. for approximately $840 million.
January 22, 2018
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Weigao International Medical Hong Kong Limited and its joint venture partner entered into an agreement to acquire Argon Medical Devices Holdings, Inc. for $850 million on September 22, 2017. A definitive bid was submitted in this regard as per the announcement made on August 31, 2017. As per terms, consideration is on the cash-free and debt-free basis and is subject to working capital, cash, debt, expenses and tax accrual adjustments. Weigao International Medical intends to fund $420 million of the total consideration by way of debt financing and the balance by funding from internal resources. In case the deal is not closed by March 31, 2018, the deal will be terminated. Argon Medical had revenue of $225.4 million, net loss before taxation of $23.64 million, net loss after taxation of $21.34 million, EBITDA of $68 million and audited consolidated net asset value of $118 million for the year ended December 31, 2016. The deal is subject to the applicable waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, approval by majority of the shareholders of Argon Medical and approval by government authorities. As on November 3, 2017, the transaction received the early termination approval from Federal Trade Commission. The deal is expected to close by March 31, 2018. UBS AG, Hong Kong Branch acted as financial advisor for Weigao International Medical Hong Kong Limited and its joint venture partner in the transaction. Moelis & Company LLC acted as the financial advisor to Argon Medical Devices Holdings, Inc. Tim Wang, Howard Adler, Philip Wagman, Timothy Cornell, Atul Jain, Daryl Fairbairn, Jennifer Saionz, Yan Yuan, Abigail Cessna, Brian Concklin, Rebecca Pereira, Yue Zheng of Clifford Chance LLP acted as legal advisor to Shandong Weigao Group Medical Polymer Company Limited.
Weigao International Medical Hong Kong Limited and its joint venture partner completed the acquisition of Argon Medical Devices Holdings, Inc. for approximately $840 million on January 23, 2018. Post-acquisition Argon Medical will become the subsidiary of Weigao International and its joint venture partner.
Capital Southwest Corporation is an internally managed business development company. The Company is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $35 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. It specializes in providing customized debt and equity financing to lower middle market (LMM) companies and debt capital to upper middle market (UMM) companies in a range of investment segments located primarily in the United States. Its investment objective is to produce attractive risk-adjusted returns by generating current income from the Company's debt investments and realizing capital appreciation from its equity and equity-related investments. It invests primarily in debt securities, including senior debt and second lien, and also invest in preferred stock and common stock alongside its debt investments or through warrants.
Weigao International Medical Hong Kong Limited and its joint venture partner completed the acquisition of Argon Medical Devices Holdings, Inc. for approximately $840 million.
CAPITAL SOUTHWEST CORPORATION 
