Arcline Investment Management has agreed to sell Resolution Medical to Resonetics, a portfolio company of The Carlyle Group.
Resolution Medical is a contract development and manufacturing organization (CDMO) that designs, tests, and manufactures complex medical devices with capabilities that include rapid prototyping, device engineering, precision molding, laser welding, bio-simulation (labs that recreate in-vivo conditions to refine designs without relying exclusively on animal models), and manufacturing in ISO Class cleanrooms.
Resolution Medical’s products include advanced catheter delivery systems, active implantable devices, and nitinol components used in stents and guidewires. The company supports therapeutics including structural heart, neuromodulation, cardiology, electrophysiology, and heart failure, providing services that span early concept development through regulated commercial production. Customers range from original equipment manufacturers to emerging device companies.
Resolution Medical, founded in 2012 by Steve Schmidt and Shawn Patterson, has more than 240 employees, including over 100 engineers, and is led by CEO Peter Herman. The company is headquartered north of Minneapolis in Fridley, Minnesota.
“With Arcline’s support, Resolution Medical has become a leader in the development and commercialization of cutting edge medical devices in the fastest-growing therapeutic modalities,” said Mr. Herman. “We look forward to joining the Resonetics team and continuing our mission of supporting the most innovative technologies in interventional medicine to save lives and improve patient outcomes.”
Resonetics is a provider of micro-machining manufacturing services including laser processing, nitinol processing, centerless grinding, thin-wall stainless steel and precious metal tubing, photochemical machining, microfluidics, sensor solutions, and medical power.
The company’s capabilities include precision laser prototyping and manufacturing that can create features as small as one micron – a fraction of a human hair – in a variety of materials. According to Resonetics, it has the world’s largest capacity for laser micro-machining polymers in ultra-violet wavelengths. The company also designs, builds, and services purpose-built laser workstations to meet specific customer needs.
Resonetics was founded in 1987 and initially grew as an independent precision manufacturing business serving medical device and life sciences customers. In 2014, the company received its first institutional backing from Sverica Capital Management, which supported its early expansion and acquisition strategy. Sverica exited in 2018 when GTCR acquired the company and continued to scale the platform through organic growth and add-on acquisitions. In 2021, GTCR sold Resonetics to The Carlyle Group with management retaining a minority interest.
Today, Resonetics is led by CEO Kevin Kelly and is headquartered near Boston in Nashua, New Hampshire, with 17 facilities and more than 2,600 employees in the United States, Canada, Costa Rica, Israel, and Switzerland.
“Resolution Medical is an exceptional organization with deep technical expertise, a strong innovation culture, and a proven track record in designing and developing complex medical devices for the most innovative companies,” said Mr. Kelly. “This acquisition enhances our ability to deliver fully integrated solutions for customers in high-growth markets like neuromodulation and structural heart and supports our vision of becoming the most comprehensive partner in the medical device industry.”
Arcline makes control investments in companies with recurring revenue models across sectors such as defense and aerospace, industrial and medical technology, life sciences, and specialty materials. The firm targets companies with EBITDA ranging from $10 million to $100 million and enterprise values up to $1 billion. In March 2023, Arcline closed its third fund with $4.5 billion in capital commitments, following its $2.75 billion second fund closure in January 2021.
The Carlyle Group invests worldwide in buyouts, growth capital, real estate, and leveraged finance. With $381 billion in assets under management, the firm has more than 2,200 employees across 29 offices on five continents and is based in Washington DC.
Piper Sandler & Co. was the financial advisor to Resolution Medical.
This transaction is scheduled to close by the end of the first quarter.
Resolution Medical, founded in 2012 by Steve Schmidt and Shawn Patterson, has more than 240 employees, including over 100 engineers, and is led by CEO Peter Herman. The company is headquartered north of Minneapolis in Fridley, Minnesota.
