Xinrong Best Medical Instrument Co. has secured an undisclosed “significant” investment from Blackstone. Based in China, Xinrong is a maker of orthopedic implants.
September 23, 2014 Shanghai — Funds managed by global asset manager Blackstone (NYSE:BX) have made a significant investment into Xinrong Best Medical Instrument Co. (“Xinrong” or the “Company”), one of China’s leading manufacturers of orthopedic implants for trauma, spine, and joint applications.
Zhenglin DING, one of the founders of the Company, said, “Since Xinrong was founded in 2000, we have developed high quality medical devices, capturing a solid share of the domestic market. With increasing demand, it is the right time to bring in Blackstone, with their global experience in this sector and expertise in helping entrepreneurs to take their businesses to the next level.”
Yi LUO, Senior Managing Director, Blackstone, added, “Xinrong’s founders have built a strong business producing high quality products through a solid network of distributors across China. With China’s aging population and increasing disposable income, the market growth for orthopedic implants is significant. Together with the founders, we will strive to develop the best local expertise, maintain an international standard of technology, and increase the market share by enlarging the scale of our business.”
The Boston Consulting Group projects the total China orthopedic implant market to grow from US$1.3 billion in 2013 to reach US$4.1 billion in 2020, representing an 18% compound annual growth rate, driven by aging population, increasing disease prevalence, improving treatment rate, and growing affordability.
In 2007, funds managed by Blackstone invested in Biomet, one of the world’s leading medical device manufacturers, and currently hold a stake in DJO, a specialist in orthopedic products for rehabilitation, pain management, and physical therapy.
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