Avante Health Solutions Enters into Asset Purchase Agreement with an affiliate of Staple Street Capital

AHS Acquisition Holdings, LLC, an affiliate of Staple Street Capital, will Serve as "Stalking Horse Bidder" in Court-Supervised Sale Process 

Avante Receives Commitment for New Financing to Support Business Operations

CHICAGO, Oct. 8, 2024 /PRNewswire/ -- Avante Health Solutions ("Avante" or "the Company"), a leading provider of aftermarket service, repair, and refurbishment for medical equipment, announced today that the Company has entered into an Asset Purchase Agreement ("APA") with an affiliate of Staple Street Capital ("SSC"), pursuant to which Staple Street Capital will acquire substantially all of the Company's assets. The agreement will support the recapitalization of Avante, enabling the Company to deleverage its balance sheet and continue operating and serving customers over the long-term. 

To facilitate the transaction, Avante has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This will provide for a quick and orderly sale of the Company's assets under Section 363 of the Bankruptcy Code, with Staple Street Capital serving as the "stalking horse bidder" in a court-supervised auction and sale process. 

"Our team has been working diligently to strengthen our financial foundation in the face of difficult circumstances brought on by ongoing litigation, which has cost Avante approximately $20 million over the past several years," said Jim Leitl, Chief Executive Officer and President of Avante Health Solutions. "After evaluating our options, the Board and management team determined that entering into an agreement with Staple Street Capital, who will support Avante's long-term success, is the best path forward. We are confident that this acquisition best positions the business for the future. As always, we remain committed to continue our mission of making it easier and more affordable for every hospital, clinic, and medical practice to have the very best equipment, supplies, and services. I want to thank our incredibly talented employees for their continued focus and hard work, and our customers, partners, and suppliers for their support." 

The partners of Staple Street Capital said, "We are excited to partner with Avante to provide the strategic and capital resources to enable a successful recapitalization of the business and support its long-term growth strategy. We look forward to further investing in Avante to meet the highest standards of customer care and quality, and to further innovate new value-added services and solutions for customers."

The agreement with Staple Street Capital remains subject to Court approval and other customary conditions, with an expected completion date by year end. Avante intends to move through this process while operating in the ordinary course – providing the industry-critical services that its customers, patients, and partners rely on. In connection with the proposed sale transaction, Avante has received a commitment for debtor-in-possession ("DIP") financing from Staple Street Capital to support the business through the sale process. The Company intends to pay vendors, suppliers, and other trade creditors in full under normal terms for goods and services provided during the bankruptcy case. Avante will exit the Chapter 11 process with a healthy balance sheet and with Staple Street Capital as a financial partner to support its future growth. 

Additional information on the Company's Chapter 11 case can be found at https://omniagentsolutions.com/Avante or call our dedicated number at (866) 989-3043 (for toll-free U.S. and Canada calls) or (818) 698-8426 (for tolled international calls).

Avante is advised in this matter by Polsinelli as legal counsel and Riveron RTS, LLC as financial advisor.

Staple Street Capital is advised by Schulte, Roth, & Zabel, LLP as legal counsel.

About Avante Health Solutions
Avante Health Solutions has over 35 years of experience and is recognized as a leading provider in the medical equipment and services industry. Avante Health Solutions offers a range of services including diagnostic imaging, medical surgical, patient monitoring, and ultrasound. They also provide rental equipment and solutions for animal health providers, international healthcare facilities, and the U.S. federal government. Avante Health Solutions prides themselves on being a comprehensive provider, partnering with their customers from consultation and installation to service, repair, and ongoing technical support, as well as advanced remote monitoring solutions.

About Staple Street Capital
Staple Street Capital is a leading private equity firm with approximately $900 million of capital under management and invests in market‐leading businesses where there are transformational opportunities to create value. SSC helps companies capitalize on new opportunities to build stronger, more valuable businesses. For more information see www.staplestreetcapital.com.

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SOURCE Avante Health Solutions