GTCR Acquires Resonetics from Sverica

Regatta Medical, a portfolio company of GTCR, has acquired Resonetics, a medical device contract manufacturing organization and a portfolio company of Sverica Capital Management. Sverica acquired Resonetics in October 2014 from Corporate Fuel Partners.

Resonetics provides laser micro-machining manufacturing services for medical device and diagnostic companies, as well as other markets requiring laser processing of polymers and glass. According to the company, it offers the world’s largest capacity for laser micro-machining polymers in ultra-violet wavelengths. The company’s capabilities include precision laser prototyping and manufacturing, including creating features as small as one micron, a fraction of a human hair, in a variety of materials.

The company also designs, builds and services purpose-built laser workstations to meet specific customer needs. Resonetics, founded in 1987, has approximately 275 employees and is headquartered in Nashua, NH (www.resonetics.com).

GTCR and Regatta Medical’s investment in Resonetics will be funded from GTCR Fund XII, which closed in October 2017 with $5.25 billion of capital. Existing Resonetics management and Sverica will retain minority stakes in the company.  The Resonetics management team, led by CEO Tom Burns, will continue in their existing roles as a subsidiary of Regatta Medical.

GTCR formed Regatta Medical (www.regattamedical.com) in April 2017 in partnership with industry executives Chip Hance and Mark Weishaar in order to build a platform in the medical device industry. Prior to partnering with GTCR, Mr. Hance was the Chief Executive Officer of Creganna Medical, a portfolio company of Permira and a supplier of contract manufacturing services for medical devices. As CEO of Creganna Medical, he doubled the business via acquisition and organic growth before completing a sale of the company in 2016 to TE Connectivity, a Swiss maker of connectivity and sensor products. Before joining Creganna Medical, Mr. Hance spent more than 20 years in senior leadership roles at Abbott Laboratories, most recently as the President of Abbott’s vascular division. Mr. Weishaar’s background includes more than 30 years at Abbott Laboratories most recently as its Vice President of Acquisitions & Licensing.

“Tom Burns and the Resonetics team have built an exciting platform company,” said Mr. Hance. “We look forward to investing in the business, further building out its scale and capabilities and becoming an increasingly valuable partner to our growing base of customers.”

“Resonetics has an excellent track record of fabricating quality medical devices using innovative technologies and we look forward to investing additional capital to support both organic initiatives and strategic follow-on acquisitions,” said GTCR Managing Director, Sean Cunningham.

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. Sectors of interest include business services; technology, media & telecommunications; healthcare, and financial services & technology. Since its inception in 1980, GTCR has invested more than $15 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

“Sverica has been a great partner, supporting the dramatic growth of Resonetics over the last three years. GTCR has an impressive track record in the healthcare space helping companies grow via organic initiatives and through strategic acquisitions. We look forward to continuing the relationship with Sverica and working with Chip and GTCR to enhance our ability to serve the medtech industry with a broader set of capabilities,” said Mr. Burns.

“Resonetics has been a very successful growth story for Sverica’s business-builder model across our High-Value Industrial and Healthcare verticals,” said Dave Finley, Managing Director at Sverica. “We were very pleased to extend the relationship with Chip Hance, Tom Burns and the Resonetics team, and to work with GTCR and the resources they will bring to bear to continue to grow and scale the company.”

Sverica, invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include information technology & business services, healthcare services and high-value industrial products. Sverica was founded in 1993 and has raised over $700 million of capital across four funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

© 2018 Private Equity Professional | February 2, 2018

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