PURCHASE, N.Y., Jan. 11, 2016 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (“MVC” or the “Company”), a publicly traded business development company that makes private debt and equity investments, today announced that it has completed the sale of Ohio Medical Corporation (“OMC”) through an asset sale to Tenex Capital Management. OMC is a manufacturer and supplier of suction and oxygen therapy products and medical gas equipment devices. Robert W. Baird & Co served as the financial advisor to OMC and MVC.
MVC expects to receive gross proceeds of $40 million, including fees. MVC received cash proceeds of approximately $29 million at the closing and anticipates receiving an additional $11 million, assuming the full receipt of all escrow proceeds scheduled for various periods, with the final release of payment scheduled for 18 months from the closing. Assuming full receipt of the escrow, MVC’s gross proceeds of $40 million is $1.5 million more than the expected sale price disclosed in the subsequent events section of the second quarter 2015 Form 10-Q.
MVC initially sponsored the acquisition of General Electric’s Ohmeda Brand Suction and Oxygen Therapy business unit, and its largest supplier, Squire Cogswell/Aeros Instruments, Inc., and the subsequent merger of these two entities to create OMC in 2005. MVC subsequently sponsored OMC’s acquisition of Amvex Corporation, and later made an additional equity investment to support the acquisition.
“The capital generated from this transaction provides enhanced financial flexibility,” said Michael Tokarz, Chairman & Portfolio Manager of MVC. “With an experienced lending team, proprietary deal flow and continued demand from small to middle market companies seeking capital, we have a solid platform from which to generate shareholder value.”
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About MVC Capital, Inc.
MVC is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit the MVC's website at www.mvccapital.com.
Forward Looking Statements
The information contained in this report contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: the performance of MVC Capital's investments; the receipt of escrow proceeds from the above transaction; MVC Capital's ability to execute its yield investment strategy; the extent of deal flow and capital to be deployed using proceeds from the transaction; and changes in economic or financial market conditions and other factors that are enumerated in the Company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this report.