In a deal approved by the US Bankruptcy Court, Schulte Roth & Zabel advised AHS Acquisition Holdings, LLC (an affiliate of Staple Street Capital, a private equity firm focused on investing in middle market companies), in the $75 million acquisition of the assets of Jordan Health Products and its affiliates (a/k/a Avante Health).
Avante's motion to authorize the sale to AHS Acquisition, the debtor's stalking horse bidder and lender, was granted after a broad solicitation and marketing process, at the conclusion of which the AHS offer was deemed to be the highest and best offer Avante received. The approval to sell was followed by the negotiation and approval of a settlement agreement between Avante, its unsecured creditors committee and AHS. The settlement agreement resolved objections to the sale and AHS's debtor-in-possession financing, and included terms providing for AHS to assume certain additional administrative claims. The going-concern sale, when completed, will preserve jobs for nearly 300 employees.
The Schulte team was led by the Business Reorganization Group headed by co-chair Adam Harris with partner David Karp, special counsel Neil Begley and associates Reuben Dizengoff and Matt Hamparyan. Partner Joe Reich (Tax), special counsel Ross Karlik (M&A) and Scott Kareff (Intellectual Property) and associate Julia Cummings (M&A) assisted on the transaction.