Acrotec, a portfolio company of Carlyle, has agreed to acquire Axial Medical, a manufacturer of precision components used in medical devices.
The Acrotec Group, headquartered 75 miles west of Zurich in Develier, Switzerland, is a manufacturer of micromechanical products through three operating groups: watch and jewelry, medtech, and precision high-tech. Many of the company’s products are made from steel, gold, brass, copper, stainless steel, nickel silver, aluminum, and titanium. Acrotec is led by CEO François Billig.
Acrotec’s watch and jewelry group is the largest independent watch components supplier to the Swiss premium mechanical watch market with products that include oscillating weights, escapements, shock absorbers, spring barrels, and jewels. The medtech group manufactures implants and instruments for spine surgery, extremities, maxillo-facial procedures, and high-precision pumps used in dialysis and diagnostics equipment. The precision high-tech group supplies components used in the electronics, aerospace, and automotive industries.
Carlyle acquired Acrotec in February 2021 and is actively looking to expand Acrotec’s medtech business by expanding into new services and geographies in Europe, Asia, and North America.
Axial Medical is a high-volume manufacturer of orthopedic implants for spine, trauma, and extremity treatments and is an approved supplier to numerous original equipment manufacturers of medical devices. Family-owned Axial, led by CEO Vince Visco, was founded in 2014 and operates a 40,000 sq. ft. manufacturing facility – with over 60 five-axis CNC machines – that is located near Philadelphia in Warminster, Pennsylvania.
“We are pleased to be joining Acrotec,” said Mr. Visco. “In doing so, we believe we will be able to accelerate Axial’s ultimate goal of becoming an industry-leading contract manufacturing organization. Importantly, in Acrotec, we recognize a business that shares our ambitions and values. This is a critical step for Axial, and we look forward to working with François and the Acrotec team on building our position as a leading manufacturer of medical components.”
“When Carlyle invested in Acrotec, we knew we had an ambitious investor and partner who would support our growth objectives, which included expanding our business into the large and growing medtech sector,” said Mr. Billig. “Axial provides the perfect entry point for Acrotec in the US market, and we are delighted that such a high-quality and complementary business is joining our family. This deal will significantly strengthen our medtech division and open up new opportunities for further bolt-on acquisitions in the United States.”
“This acquisition represents another significant milestone in our partnership with Acrotec,” said Carlyle Managing Director Jonathan Zafrani and Director Simon Pex in a released statement. “Since we started working together in 2021, the team has delivered seven acquisitions with the objective of growing Acrotec’s presence and capturing expansion opportunities in new markets. Axial is an excellent business offering access to the attractive US medtech sector while also being an ideal fit for Acrotec’s federated business model, enabling Vince and his team to continue growing the business.”
The Carlyle Group (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate, and leveraged finance. With $293 billion of assets under management, the firm has more than 1,800 employees in 26 offices across five continents and is based in Washington DC.
Axial Medical was advised on this transaction by Greenberg Variations Capital (financial advisor), Middle Branch Partners (general advisor), and Fox Rothschild (legal advisor).
© 2023 Private Equity Professional | February 14, 2023
