Genstar Capital-backed Tecomet Inc. has agreed to buy a high precision surgical instrument making unit out of Symmetry Medical Inc. for $450 million. The business unit, OEM Solutions, has more than 450 customers, nearly 2,300 employees and 13 facilities in the U.S., U.K., Ireland, France and Malaysia. The deal is expected to close in the fourth quarter.
Tecomet Inc., a Genstar Capital portfolio company and precision contract manufacturer supporting the medical device and aerospace industries, today announced that it has signed a definitive agreement with Symmetry Medical Inc. (NYSE: SMA) to acquire its OEM Solutions business segment for $450 million.
Headquartered in Warsaw, Indiana, OEM Solutions manufactures high precision surgical instruments, orthopedic implants, and plastic and metal sterilization cases and trays, selling its products to global medical device OEMs. OEM Solutions has over 450 customers, nearly 2,300 employees and 13 facilities in the U.S., the U.K., Ireland, France and Malaysia.
Bill Dow, Chief Executive Officer of Tecomet, said, “The combination of Tecomet and OEM Solutions creates a contract manufacturing enterprise that is capable of meeting the growing needs of our customers. OEM Solutions will not only extend the capabilities we offer but also our global reach. Our experienced and successful Tecomet team looks forward to working with OEM Solutions’ strong management crew and workforce to offer exceptional products, services and capabilities to the industries we serve.”
Rob Rutledge, who leads Genstar’s industrial technology vertical said, “OEM Solutions and Tecomet share a reputation for providing world-class products for their customers’ most demanding medical device applications. Genstar is excited to be supporting Tecomet in this combination of two great companies in the contract manufacturing industry, and believes the combined company will provide its customers with an enhanced set of capabilities.”
The transaction is expected to be completed in the fourth quarter and is subject to customary closing and regulatory approvals.
UBS Investment Bank is acting as exclusive financial advisor and Weil, Gotshal & Manges LLP is acting as legal advisor to Tecomet in connection with the transaction.
Founded in 1964 and based in Wilmington, MA, Tecomet manufactures orthopedic implants, precision surgical instruments, trauma plates and photochemical etched products for medical device customers. Tecomet uses its industry-leading prototyping and engineering capabilities to produce highly complex products that provide innovative solutions for its customers’ most demanding products and applications. Tecomet is also a leading manufacturer of precision components to the aerospace & defense industry, producing products used in missile & satellite propulsion systems, vision systems, and infrared applications. For more information about Tecomet, please visit www.tecomet.com.
About Genstar Capital, LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages approximately $3 billion of committed capital and targets investments focused on selected sectors within the industrial technology, financial services, software, and healthcare industries.