Tecomet, a Genstar Capital portfolio company and a medical device and aerospace contract manufacturer, has signed an agreement with Symmetry Medical (NYSE: SMA) to acquire its OEM Solutions business segment for $450 million. The transaction is expected to be completed in the fourth quarter.
OEM Solutions manufactures surgical instruments, orthopedic implants, and plastic and metal sterilization cases and trays, selling its products to medical device OEMs. OEM Solutions has over 450 customers, nearly 2,300 employees and 13 facilities in the US, the UK, Ireland, France and Malaysia. The company is based west of Ft. Wayne in Warsaw, IN (www.symmetrymedical.com).
Tecomet, acquired by Genstar from Charlesbank Capital Partners in December 2013, is a contract manufacturing, engineering, and technology company specializing in net shape forging, precision machining, photochemical etching, surface texturing, vacuum brazing, laser and electron beam welding, and rapid prototyping. The company’s components and assemblies are used in the medical (with a special emphasis on orthopedic, trauma and spinal implants), aerospace & defense, commercial and industrial markets. Tecomet was founded in 1964 and is headquartered in Wilmington, MA and has additional facilities in Woburn, MA; Kenosha, WI; and Azusa, CA (www.tecomet.com).
“OEM Solutions and Tecomet share a reputation for providing world-class products for their customers’ most demanding medical device applications,” said Rob Rutledge, who leads Genstar’s industrial technology vertical. “Genstar is excited to be supporting Tecomet in this combination of two great companies in the contract manufacturing industry, and believes the combined company will provide its customers with an enhanced set of capabilities.”
Genstar Capital invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Genstar manages approximately $3 billion of committed capital and targets investments in the industrial technology, financial services, software, and healthcare industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
UBS Investment Bank is acting as exclusive financial advisor and Weil, Gotshal & Manges is acting as legal advisor to Tecomet in connection with the transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 8-4-14