Triad Plans to Sell 4 Million Shares in IPO

LAGUNA HILLS — Triad Medical Inc. aims to raise $37 million in an initial stock offering that would fund the acquisition of 11 private distributors of medical products, according to a filing with regulators.

Triad, formed last spring to create a nationwide distribution company, plans to sell 4 million shares of common stock at a price ranging from $10 to $12 a share. Money raised would be used pay $22.2 million in cash for stock of the companies it’s acquiring and retire $15.3 million in debts.

Assuming federal regulators approve the sale, certain owners of the companies being acquired would end up as executives, officers or directors of Triad.

The enterprises, if previously combined, would have posted total sales of $127.9 million last year and $4.9 million in profits, according to the filing. The companies have headquarters in California, Alabama, Texas, Indiana, Maryland, Washington and Connecticut.

They distribute products of more than 180 manufacturers of medical products to hospitals and other health-care providers. They have a combined work force of 360 employees, including 140 sales and marketing representatives.

The largest of the businesses is THI Holdings Inc., of Laguna Hills, which had sales of about $35.6 million last year. Another local business in the group is Kentec Medical Inc., an Irvine company with revenue of about $13.6 million for the year ended June 30.