RTI Biologics, a provider of orthopedic and other biologic implants, said on Tuesday that it will buy Pioneer Surgical Technology from Beringea. Under terms of the merger agreement, RTI will pay $130 million in cash to acquire all outstanding stock of Pioneer. Based in Marquette, Michigan, Pioneer Surgical is a maker of products for the spine, biologics, orthopedics, and cardiothoracic markets.
FARMINGTON HILLS, Mich. –RTI Biologics Inc. (RTI) (NASDAQ: RTIX), a leading provider of orthopedic and other biologic implants, has announced its intent to acquire Pioneer® Surgical Technology (Pioneer), a Beringea, LLC portfolio company based in Marquette, Mich. that manufactures and distributes metal and synthetic products in the orthopedics, biologics, spine, trauma and cardiothoracic markets.
Under the terms of the merger agreement, RTI will pay $130 million in cash to acquire all the outstanding stock of Pioneer. Beringea first invested in Pioneer in 2008; the exit is the third in three months for the private equity group, which includes Beringea’s London, UK affiliate, Beringea LLP.
“We believe the combination of Pioneer and RTI will be a catalyst for continued growth,” said Daniel Webber, Pioneer’s president and chief executive officer. “The combined company will have a broad portfolio of complementary surgical implants benefiting patients, surgeons and hospitals, as well as advancing the positive momentum we have built at Pioneer. Additionally, RTI’s culture of innovation is a great fit with that of our own employees.”
RTI’s expects the transaction will enhance RTI’s existing core competency in biologics processing with the addition of Pioneer’s core competency in metals and synthetics.
“The combination of RTI and Pioneer is an exciting opportunity for both companies and their employees,” said Brian K. Hutchison, RTI president and chief executive officer. “This acquisition is strongly aligned with RTI’s long term strategic plan, accelerating new growth opportunities and gross margin expansion. Pioneer has built a strong distribution network for their implants, which will be beneficial when we launch our map3™ cellular allogeneic bone graft later this year. This acquisition will bring immediate scale, allowing us to reach our strategic goals and take advantage of growth opportunities more quickly than either company could do independently.”
About RTI Biologics Inc.
RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.
RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle™ SP DBM — have a combined record of more than five million implants sterilized with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.
RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.
About Pioneer® Surgical Technology Inc.
Pioneer Surgical Technology Inc. was founded in Marquette, Mich. in 1992. Since that time, Pioneer Surgical has developed successful products in the spine, biologics, orthopedics, and cardiothoracic markets. Pioneer has several facilities throughout the U.S. and in Houten, The Netherlands. The company employs approximately 300 people worldwide. Pioneer’s state-of-the-art manufacturing capabilities differentiate it from others in the marketplace. This vertically-integrated structure greatly enhances Pioneer’s ability to take an idea from the drawing board to commercialization. Pioneer demonstrates its commitment to surgical innovation by designing and delivering products that provide intraoperative efficiency for surgeons, cost-effectiveness for the healthcare system and better outcomes for patients. For more information on Pioneer and its products visit www.pioneersurgical.com.
Beringea LLC is a private equity firm offering advice, guidance and capital to support growing businesses. The firm has experience investing in companies at every stage of development; however, it primarily focuses on providing growth capital and mezzanine financing.
Founded in 1988, Beringea LLC is headquartered in Farmington Hills, Michigan. Beringea, LLC’s affiliate in London, UK is Beringea LLP. Beringea, LLC and Beringea LLP invest in portfolio companies operating in a range of sectors, including health care and life sciences, clean technology, advanced manufacturing, media, Internet technologies and specialized consumer products.
With capital, experience and offices in the U.S. and UK, Beringea’s team offers its portfolio companies the resources to develop strategy, evaluate growth opportunities and build value. For more information, visit www.beringea.com.