Via M&A, GTCR’s Resonetics doubles revenue in a year

  • Caribou marks 3rd Resonetics deal in 12 months
  • In April ’17, GTCR launched Regatta with industry vet Hance to seek medical-device opportunities
  • Resonetics expanded in medtech hubs: Minneapolis, Israel

Making good on its aggressive M&A strategy, GTCR’s Resonetics is quickly becoming a medical device contract manufacturing operation of scale.

Resonetics this week bought Caribou Technologies, of Blaine, Minnesota, its third add-on since receiving investment from the Chicago PE firm a year ago.

Terms weren’t disclosed, but Resonetics has seen revenue about double since the initial platform acquisition 12 months earlier, a person familiar with the matter said.

Resonetics, which focuses on precision laser cutting for components in interventional medical devices, adds specialized grinding, forming, coiling, machining and laser processing capabilities through the Caribou deal.

“In the last year we have built Resonetics into one of the larger players in the industry,” the firm’s managing director, Sean Cunningham, said.

“[We’re trying to] build a very full-service platform that serves medical-technology customers focused on interventional products.”

Like Israel’s STI Laser Industries and Swiss provider Medelec, Caribou was on its radar screen when GTCR partnered with the Resonetics team last year, Cunningham noted. Resonetics bought STI and Medelec in October and June, respectively.

The roll-up strategy has also been a meaningful driver geographically speaking. Locations like Israel and Minneapolis are both major medtech hubs.

GTCR initially launched Regatta Medical in April 2017 alongside industry veteran Chip Hance to seek opportunities in medical devices. The partnership subsequently bought a majority stake in Resonetics in February 2018, with shareholder Sverica Capital Management staying on as a minority investor.

The investment was done through GTCR’s 12th buyout fund, which collected $5.25 billion in October 2017.

GTCR prior to Resonetics has a history of investment in life-science outsourcing.

For example, the firm in 2015 sold a majority stake in Sotera Health (then called Sterigenics) to Warburg Pincus in a deal reportedly valued at more than $2 billion including debt.

GTCR, which remains an investor in the provider of contract sterilization services for medical devices, bought Sterigenics in 2011 for $625 million from Silverfleet Capital.

And in 2014 GTCR sold another specialized medical-device-products maker, Devicor Medical Products, to Danaher’s Leica Biosystems. Devicor makes products used in breast biopsy procedures.

GTCR’s initial platform was done through a Johnson & Johnson carveout transaction in 2010.

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