PE shop Aurora closes Cardiac Science buy

Aurora Capital Group affiliate Aurora Resurgence said today it completed its acquisition of automated external defibrillators Cardiac Sciences assets, concluding its restructuring and purchase.

Waukesha, Wisc.-based Cardiac Science develops, manufactures and markets automated external defibrillators and related accessories, and provides training and services around the devices.

“We are excited to complete this transaction in an expedited time frame, with no disruption to our distribution partners or customers. Our valued partners and customers can expect continued world-class support for their AEDs while we grow the Powerheart AED community of passionate people and organizations committed to saving lives. This is an exciting day for our employees, our customers, and our partners,” Cardiac Science prez Al Ford said in prepared remarks.

“We look forward to a long and successful partnership with the Cardiac Science team. Legislation, demographic trends, and increased awareness continue to drive AED market penetration globally. We believe Cardiac Science is well positioned to capitalize on these trends and further increase its position as an innovative leader in AED deployment,” Aurora Resurgence partner Sean Ozbolt said in a prepared statement.

Earlier this month, the buy was approved by U.S. Bankruptcy Judge Robert Martin, and included a $65 million credit bid and an agreement from Aurora to take on other liabilities including real estate debt, taxes and owed payments.

Though no total value was placed on the transaction, the Milwaukee Business Journal estimated the value at $90 million.

Aurora affiliate CFS 915 bought Cardiac Science’s bank debt through a facilities agreement in September, and removed and replaced existing officers and directors.

The proposed sale of Cardiac to Aurora was met with objections from creditors, including previous officers and employees, accusing the firm of a ‘loan to own’ scheme.

Zoll Medical also opposed the sale, as it wanted its fair chance to pick up the company.

Cardiac Science filed for Chapter 11 in October last year, hoping to restructure debt to speed up its sale, and in the same month filed a motion to seek authorization to pursue the sale.

Previously Opto Circuits (India) Ltd. (BSE:532391) owned Cardiac Science won a $23 million victory over Zoll Medical in a breach of contract lawsuit last May.

A jury in the Los Angeles Superior Court awarded Cardiac Sciences $23.0 million in lost royalties, stemming from a 2002 licensing agreement with LifeCor for patents covering its wearable defibrillator technology. But when Zoll acquired LifeCor in 2006, Cardiac Sciences alleged, Zoll stopped paying the royalties.

Opto Circuits closed its buy of Cardiac Science Corp. (NSDQ:CSCX) in December 2010.

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