Tecomet, a Genstar Capital portfolio company and precision contract manufacturer supporting the medical device and aerospace industries, has completed the acquisition of Symmetry Medical’s (NYSE: SMA) OEM Solutions business.
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 (www.tecomet.com).
This acquisition creates the largest orthopedic contract manufacturer in the world with 18 facilities located in five countries on three continents. “With this acquisition, Tecomet adds to an already wide array of services and creates a footprint that would take decades to build organically,” said Bill Dow, Chief Executive Officer of Tecomet.
“This is a great opportunity to have a transforming impact on the orthopedic contract manufacturing industry. Original equipment manufacturers are moving more of their manufacturing out to contract manufacturers that can handle the volume and provide the systems support. This merger provides a contract manufacturing platform paramount to anything else in the orthopedic industry,” said Rob Rutledge, Principal of Genstar Capital.
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 acted as exclusive financial advisor and Weil, Gotshal & Manges acted as legal advisor to Tecomet in connection with the transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 12-9-14
