Arlington Capital Partners Announces the Acquisition of Millstone Medical Outsourcing

Arlington Capital Partners (“Arlington”), a Washington, DC-based private equity firm, announced today it has acquired Millstone Medical Outsourcing (“Millstone” or the “Company”). Selling shareholders included Schooner Capital, a Boston-based investment firm. Headquartered in Fall River, MA, Millstone is a comprehensive solutions provider of quality-critical services to the medical device and pharmaceutical industries, managing post-manufacturing services and supply chain and logistics services. Millstone’s post-manufacturing services include sterile packaging, advanced inspection, validation engineering, and clean room services. The Company’s supply chain and logistics services include specialized distribution, cold chain logistics, and inventory and returns management.

Matt Altman, a Managing Partner at Arlington, said, “Over its 20+ year history, Millstone has established itself as the leading provider of outsourced quality-critical services for medical manufacturers. The Company is strategically positioned to benefit from several strong secular trends, including increased demand for outsourced post-manufacturing services and significant growth in robotic-assisted surgery. We are excited to partner with Millstone’s management team and continue to leverage the Company’s unique platform and capabilities to further accelerate growth both organically and through strategic acquisitions.”

Karl Neuberger, CEO of Millstone, stated, “Arlington is a perfect partner for Millstone as we begin our next phase of growth and expansion. Arlington’s deep healthcare industry expertise, as well as its ability to provide significant strategic and capital support, will allow Millstone to thrive as we continue to optimize our services, grow our customer base, and expand into additional addressable markets.”

Gordon Auduong, a Principal of Arlington, added, “We are thrilled to partner with the Millstone team. They have impressed us with their unwavering commitment to the highest quality standards supporting highly demanding customers. We are looking forward to providing the necessary strategic support and investments to accelerate the Company’s expansion.”

Cain Brothers, a division of KeyBanc Capital Markets, served as financial advisor and DLA Piper served as legal advisor to Arlington on this transaction. William Blair & Company served as exclusive financial advisor and Locke Lord served as legal advisor to Millstone on this transaction.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including healthcare, aerospace & defense, government services and technology, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.

For more information: www.arlingtoncap.com

About Millstone Medical Outsourcing

Headquartered in Fall River, MA, Millstone is a comprehensive solutions provider of quality-critical services for the medical industry, managing post-manufacturing services and supply chain and logistics services. The Company has 100+ programs with blue-chip medical device and pharmaceutical companies, innovators in robotic-assisted surgery, mid-size medical device OEMs, and emerging growth manufacturers. Millstone currently employs ~560 employees across two facilities in Fall River, MA and Olive Branch, MS.

For more information: www.millstonemedical.com

About Schooner Capital

Founded in 1971, Schooner Capital is a Boston-based investment firm operating with a permanent capital base. The firm invests across sectors and geographies, favoring recurring revenue, capital efficiency, and durable competitive advantage. Schooner provides active guidance and long-term support to entrepreneurs solving meaningful problems. Schooner Capital’s profits also help support The Schooner Foundation, which advances human rights causes around the world.

For more information: www.schoonercapital.com

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