RTI Biologics closes acquisition of Pioneer Surgical Technology

16 July 2013 (Last Updated July 16th, 2013 18:30)

RTI Biologics, a Florida-based manufacturer of orthopaedic and biologic implants, has completed the acquisition of Pioneer Surgical Technology for $130m as part of its strategy to boost its implant portfolio.

RTI Biologics, a Florida-based manufacturer of orthopaedic and biologic implants, has completed the acquisition of Pioneer Surgical Technology for $130m as part of its strategy to boost its implant portfolio.

This transaction was funded through a combination of cash, a senior secured credit facility of $80m for five years, which included a term loan of $60m, and a revolving credit facility of $20m secured from TD Bank, TD Securities USA, and Regions Bank, in addition to a private placement of convertible preferred equity of $50m from a private equity firm Water Street Healthcare Partners.

RTI announced its acquisition plans on 12 June.

RTI Surgical CEO and president Brian K Hutchinson said that the acquisition of Pioneer supports RTI's strategic initiatives to expand its current implant portfolio into metals and synthetics, grow direct distribution and increase its international footprint.

"RTI Surgical is now positioned for growth as a global surgical implant company providing orthopedic and biologic implant solutions for surgeons and patients around the world," said Hutchinson.

"RTI Surgical is now positioned for growth as a global surgical implant company providing orthopedic and biologic implant solutions for surgeons and patients around the world."

"We are excited about the many opportunities this acquisition brings to the company."

Following the closure of the deal, the merged entity will be known as RTI Surgical and will have its global headquarters in Alachua, Florida.

Two representatives from Water Street, Curt Selquist and Ned Villers, have been appointed to serve as directors on the company's board.

Curt Selquist, an operating partner in Water Street, had served as Johnson & Johnson Medical and Johnson & Johnson Healthcare Systems group chairman, while Ned Villers, also a partner with Water Street, has been investing in medical device companies since 1999.

RTI owns four manufacturing plants across the US and Europe and offers biologic, metal and synthetic implants, which are used in sports medicine, general surgery, spine, orthopaedic, trauma and cardiothoracic procedures.

Its devices are distributed in more than 47 countries.