Capsa Solutions, LLC Acquires Artromick International, Inc.
November 2009

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Capsa Solutions, LLC (“Capsa”), has acquired the assets of the Mobile Solutions Group of Artromick International, Inc. (“Artromick”) from private equity firm Sterling Partners.  Artromick is an industry-leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries.  Artromick represents the second add-on acquisition Keystone has closed in the preceding two months and was completed in under 40 days from Letter of Intent to closing. The acquisition also represents the fifth acquisition that Keystone has completed since October 2008.

Keystone initially acquired International Retail Services Group (“IRSG”), a leading supplier of storage and material handling products to the retail industry, in 2001.  IRSG subsequently acquired MMI Med Carts (“MMI”), a growing manufacturer of medication carts for the long-term care industry, in 2008 to form Capsa.  Thus, the acquisition of Artromick represents the second acquisition by Capsa in the past 2 years.   “The partnership with Artromick demonstrates Keystone Capital’s long-term and patient investing philosophy as evidenced by our continued investment in the Capsa platform,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc.

Located in Columbus, Ohio, Artromick has a long history of innovative product development and market leadership since its founding in 1972 by J.M. Romick.  “Artromick has a history of integrating superior design with the latest technology features to improve the efficiency of care givers at the point of care,” noted Capsa Solutions CEO Dave Burns.  “The addition of Artromick to the Capsa family is an absolute win for our healthcare partners.  Our spectrum of cart, storage, and mobility solutions fill the needs of almost any healthcare application.  Artromick is a strong and healthy brand that will continue to grow as part of Capsa Solutions.”

The combined product lines of Artromick, MMI and IRSG will cover virtually every room of an acute or long-term healthcare facility.  “The acquisition of Artromick Mobile Solutions Group by Capsa Solutions creates a significantly stronger healthcare firm for our domestic and international core markets,” said Artromick CEO Paul Guth.  “This alliance of products and professionals with extensive healthcare experience will drive new innovation that facilitates accuracy in the delivery of patient care.”

Terms of the transaction were not disclosed.  Senior debt financing was provided by The Private Bank and Fifth Third Bank.  Mezzanine financing was provided by Midwest Mezzanine Funds.

Capsa remains committed to future acquisitions in the durable healthcare products and equipment industry.  However, in order to diversify its end market base, Capsa is also interested in other opportunities to acquire industry-leading suppliers of mobility solutions, material handling solutions, and storage solutions serving alternate end markets, including light manufacturing and assembly.

About Capsa Solutions, LLC

Capsa Solutions, LLC is a leading supplier of carts, storage, shelving, transport and processing solutions for the healthcare, retail, and light manufacturing industries.  Capsa Solutions will be comprised of three lines of business, which include IRSG, MMI Med Carts, and Artromick.  IRSG, with operations in Itasca, IL, is the market leader in specialized storage and handling solutions sold into the retail, healthcare and light industrial markets.  MMI Med Carts, with operations in Los Angeles, CA, is a leading supplier of medication carts for the long-term care industry.  Artromick International, with operations in Columbus, OH, is a leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries.  For more information on Capsa Solutions, please see www.capsasolutions.com.

About Sterling Partners

Sterling Partners is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses and generate superior returns.  With approximately $4 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals.  Sterling Partners is a leader in education, healthcare and business services and is co-headquartered in Chicago and Baltimore, with additional offices in Mexico City and Delhi.  For more information, please visit www.sterlingpartners.com.

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