Vantedge Medical, a portfolio company of Aterian Investment Partners, has closed the add-on acquisition of Hobson & Motzer.
Hobson is the fifth medical add-on acquisition for Vantedge, formerly Vander-Bend Manufacturing, since being acquired by Aterian through its $257 million second fund in May 2018.
In October 2023, Aterian closed Aterian Opportunities II LP (AO Fund II), a new single-asset continuation vehicle with capital commitments of $460 million. Capital from AO Fund II was used to purchase Vander-Bend from Aterian’s second fund and provide an incremental $90 million of equity to support Vander-Bend’s future activities. After the sale to AO Fund II, Vander-Bend was rebranded as Vantedge Medical.
Vantedge Medical is a prototyper, developer, manufacturer, and assembler of large-format metal products used primarily in the medical technology sector for robotic-assisted surgery and radiation oncology. The company, led by CEO Brian King, was founded in 1979 and is headquartered in San Jose, California, with nine production facilities and over 1,200 employees.
With the buy of Hobson & Motzer, Vantedge has now completed five add-on acquisitions under Aterian ownership. The four earlier buys included Omni Components, a New Hampshire-based manufacturer and service provider of consumable medical products used in spinal, cardiovascular, and tendon-related surgeries (April 2023); Swiss Precision Machining, an Illinois-based manufacturer of complex and tight tolerance consumable medical instrument components used in robotic surgery (December 2020); TMK Manufacturing, a California-based provider of prototyping and machining services to medical technology companies (May 2020); and J.L. Haley Enterprises, a California-based fabricator of metal components used primarily in medical devices (January 2019).
Hobson & Motzer is a precision manufacturer specializing in medical devices with a strong focus on consumable products for the global surgical stapler market. All of Hobson’s sales are derived from medical consumables devices. Hobson’s capabilities include progressive die stamping, precision electrochemical machining (ECM), coined wire, CNC machining, tooling, and assembly services.
Hobson & Motzer’s customers include major medical technology OEMs, particularly those specializing in surgical and orthopedic tools. Hobson, led by its president and owner Bruce Dworak, is headquartered 25 miles south of Hartford in Durham, Connecticut. The company was founded in 1912 and today operates two facilities with a combined 180,000 square feet of manufacturing space.
“As I contemplated transitioning the company to new ownership, my key requirements were to find a company that shared our commitment to quality, service, and innovation, had deep experience in the MedTech space, and viewed our capabilities as enablers for growth,” said Mr. Dworak. “Vantedge Medical met these criteria in every way. I look forward to the continuing legacy of performance and market leadership, just at a much larger scale.”
“It gives me great pleasure to announce the union of Vantedge Medical and Hobson & Motzer. I have worked with the Hobson & Motzer team for many years, and they consistently delivered best-in-class quality, service, value, and innovation,” said Mr. King. “Their depth and scale of capabilities, backed by over 100 years of experience, perfectly complements the existing Vantedge capabilities, enhances the value we bring to the world’s leading medical technology companies, and amplifies the difference we are making in the lives of patients and their families.”
“We are excited to share the news about this transaction, which we believe will allow Vantedge to take the next significant step in its strategic development,” said Brandon Bethea, a co-founder and partner at Aterian. “Vantedge continues to evolve as a differentiated, scaled, and expanding medical technology supplier into the industry’s most attractive OEMs across various manufacturing disciplines and treatment modalities. The human health technologies that Vantedge serves on behalf of its customers change lives for the better and, in certain circumstances, save them. It is a privilege to wake up every day and work alongside Vantedge and through Vantedge, our customers.”
Aterian invests from $30 million to $150 million in middle market businesses with $50 million to $750 million in revenue and $10 million to $60 million in EBITDA. The firm’s latest fund, Aterian Investment Partners IV LP, began investing in April 2023 with $830 million of committed capital. Aterian has offices in New York City and Miami.
© 2024 Private Equity Professional | September 10, 2024
