Growth Financing

Paragon Medical, Inc. – 2005 to present

Company History

Headquartered in Pierceton, Indiana, Paragon is a turnkey supplier of surgical instruments, implantable components and instrument delivery systems to the worldwide medical device marketplace. The company specializes in the hip, knee, spine, trauma and sports medicine disciplines. Paragon was incorporated in 1991 and began developing a business concept designed to integrate the manufacturing, storing, sterilizing and presentation of surgical instruments and related medical devices. Since that time, the company has evolved into a value-added supply partner providing outsourced product design, development and manufacturing capabilities to many leading original equipment manufacturers (“OEMs”) in the orthopedic market.

Transaction Description

SEP invested preferred equity capital into the company in support of several important strategic growth initiatives, including:

• Expansion of the company’s manufacturing capacity.
• Completion of important strategic acquisitions.
• Strengthening of the company’s capital structure and balance sheet.

SEP acts as a board-level resource to the company and has played an important role in the analysis, structuring and closing of two strategic acquisitions.

Post Transaction Highlights

Under the continuing leadership of the founding shareholders and executive management team, Paragon has continued to execute its strategic plan to expand its product offerings and serve as a value-added partner to its key customers. In 2005, the company broke ground on a production facility which was completed in 2006. In December 2005, Paragon completed the acquisition of Mark Machine, Inc. and Ortho-Craft, Inc., manufacturers of high-quality, precision orthopedic devices. In January 2006, Paragon completed the acquisition of a production facility for sports medicine and arthroscopy devices. In 2006 and 2007, Paragon further enhanced its product line capabilities with the acquisitions of Hand Industries, Inc., OMC Precision Products, and Turtela Medicus, Inc. These acquisitions have helped Paragon further diversify its product offerings and broaden the device programs it can provide to key customers.