GTCR and Carlyle Continue Build of Nitinol Platform

GTCR and Carlyle Continue Build of Nitinol Platform

Nitinol-based medical devices have “shape memory” properties that allow them to return to their original shape when heated

Memry’s medical products include neurovascular hypotubes, implantable and single use cardiovascular devices, orthodontics wires and brackets, and orthopedic medical devices.

SOURCE: Getty Images

Resonetics has closed the add-on acquisitions of Memry Corporation and SAES Smart Materials from Italy-headquartered SAES Getters for $900 million. Resonetics is a portfolio company of GTCR and Carlyle.

GTCR’s investment in Resonetics is through Regatta Medical which was formed by GTCR and operating executive Chip Hance in April 2017 to acquire medical device manufacturing companies. Regatta acquiring Resonetics from Sverica Capital Management in February 2018. Caryle invested in Resonetics in December 2021.

Memry and Smart Materials (together Memry) are providers of Nitinol-based medical devices and industrial components, and Nitinol material and alloys in milled, wire and strip, tube and sheet formats. Nitinol is an alloy of nickel and titanium with “shape memory” properties. A device made from Nitinol can remember its original shape and return to it when heated.

Source: Memry Corporation

Memry’s medical products include neurovascular hypotubes, implantable and single use cardiovascular devices, orthodontics wires and brackets, orthopedic medical devices and urology and endoscopy devices. The company has approximately 600 employees and operates facilities in Bethel, Connecticut; New Hartford, New York; and Menlo Park, California. Post closing, both Memry and Smart Materials will be rebranded as Resonetics.

Milan, Italy-headquartered SAES Getters, the seller of Memry, specializes in the development and production of advanced materials and technologies used in various industrial and scientific applications. The company’s primary business is manufacturing getter materials, which are substances capable of trapping and removing trace gases and impurities from sealed environments, such as vacuum systems, electronic devices, and lighting products.

According to SAES Getters, the purchase price of $900 million is equal to approximately 17x the TTM adjusted EBITDA for Memry from October 2021 to September 2022.

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.

Source: Resonetics

Resonetics, founded in 1987 and led by CEO Kevin Kelly, 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.

“Memry and SAES Smart Materials have built a legacy as critical suppliers of nitinol mill products, semi-finished materials, and complex components and implants to the medical device industry,” said Mr. Kelly. “Nitinol is a key growth driver for Resonetics, and we’re excited to expand upon our existing nitinol processing capabilities with these acquisitions so that we can provide a more complete and cost-effective nitinol solution. We believe that further investment in both businesses will allow us to expand our capacity and capabilities so that we can better serve the needs of our customers and build upon their strong market potential.”

Since its founding in 1980, Chicago-based GTCR has invested more than $24 billion in over 270 companies. Sectors of interest include business services; technology, media & telecommunications; healthcare, and financial services & technology. In November 2020, GTCR closed its thirteenth fund, GTCR Fund XIII LP, with $7.5 billion of limited partner capital commitments. The new fund, raised in just five months, is the largest investment fund in GTCR’s history. GTCR is based in Chicago with offices in New York City and West Palm Beach.

Carlyle (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate, and leveraged finance. With $381 billion of assets under management, the firm has more than 2,200 employees in 29 offices across five continents and is based in Washington DC.

© 2023 Private Equity Professional | October 6, 2023

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