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PRESS RELEASE: Beringea announces exit from portfolio company Pioneer Surgical Technology
June 18, 2013
DETROIT, 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 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 provides equity and/or mezzanine debt to small- and-middle market companies. The Firm, which includes Michigan-based Beringea, LLC and its London, UK office Beringea LLP, invests in portfolio companies operating in a range of sectors, including health care, clean technology, manufacturing, media, Internet technologies and specialized consumer products.
With flexible capital solutions, extensive investing experience and offices in the U.S. and UK, Beringea’s team offers its portfolio companies the resources to grow their businesses and create value for shareholders. For more information, visit www.beringea.com.
In the United States of America, Beringea operates as an SEC-registered investment advisor, Beringea, LLC. In the United Kingdom, this document is issued by Beringea LLP, a firm authorized and regulated by the Financial Conduct Authority. Beringea LLP is a limited liability partnership registered in England and Wales with company number OC342919, and its registered office is at 39 Earlham Street, London, WC2H 9LT, UK. This document is intended solely to provide information regarding Beringea’s potential financing capabilities for prospective portfolio companies.