Pharos Capital Sells Stake in Pioneer Surgical: CORRECTED

Pharos Capital Group has sold its stake in Pioneer Surgical Technology for $130 million. Earlier this week, RTI Biologics, which is backed by Water Street Healthcare Partners, said it was buying Pioneer from Beringea. RTI paid $130 million for Pioneer. Marquette, Mich.-based Pioneer makes and distributes metal and synthetic implant products for the orthopedics, biologics, spine, trauma and cardiothoracic markets.

(CORRECTION: A prior version of this story said Pharos sold its stake in Pioneer for $130 million. RTI, in fact, paid $130 million for Pioneer. The headline and story have been changed. )

PRESS RELEASE

Dallas, TX and Nashville, TN, July 18, 2013 – Pharos Capital Group, LLC, a private equity firm based in Dallas and Nashville, announced it has sold its stake in portfolio company Pioneer Surgical Technology, Inc. (“Pioneer”) as part of the company’s acquisition by RTI Biologics Inc. for $130 million.  Pioneer, based in Marquette, MI, is a leading manufacturer and distributor of metal and synthetic implant products for the orthopedics, biologics, spine, trauma and cardiothoracic markets.

Pharos first invested in the company in December 2006, leading a syndicate of investors in a $30.5 million Preferred Equity private placement.  Pharos later led a follow-on Series B investment of $17 million in December 2008.  Both investments were made out of the firm’s Pharos Capital Partners II fund.

Pharos’s capital was used to fund studies of Pioneer’s NUBAC™ intradiscal arthroplasty device; global distribution expansion; and aggressive project development programs including motion preservation devices, biologics, and minimally invasive surgical approaches.

Joel Goldberg, a Pharos Partner, said, “We are pleased that Pharos’s support helped the company develop new products, fund its global expansion, and produce a robust portfolio of granted and pending patents.  We are proud of Pioneer’s impressive development into a world-class innovative surgical solutions provider, and are delighted to offer our investors a successful realization from this prime investment.”

About Pharos Capital Group
Based in Dallas and Nashville, Pharos (www.pharosfunds.com) primarily invests $10 to $30 million in companies seeking later stage equity funding for internal growth, acquisitions, management buyouts or recapitalizations across industry sectors, with particular focus on healthcare and business services.  Pharos typically invests in undercapitalized businesses in underserved regions across the nation.