Water Street Healthcare Partners has completed a $50 million investment in RTI Biologics, an orthopedic and biologic implants company, to support RTI’s acquisition of Pioneer Surgical Technology. The combined company will be renamed RTI Surgical.
RTI Surgical is a surgical implant company providing surgeons with safe biologic, metal and synthetic implants. RTI’s implants are used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures and are distributed in more than 47 countries. With the acquisition of Pioneer, RTI Surgical now employs approximately 1,100 people and has four manufacturing facilities throughout the US and Europe. The company is headquartered in Alachua, FL (www.rtix.com).
As part of the transaction, RTI has appointed two representatives from Water Street to serve on its board of directors. Curt Selquist, an operating partner with more than 35 years of health care experience, will serve as a director. Prior to Water Street, Mr. Selquist was company group chairman of Johnson & Johnson Medical and Johnson & Johnson Healthcare Systems. Joining Mr. Selquist on the board is Ned Villers, a partner with Water Street who has invested in companies specializing in medical products and health care services since 1999.
“Our team is pleased to have played a role in bringing RTI and Pioneer together to create a market leader in the growing field of biosurgery,” said Mr. Selquist. “We look forward to contributing our years of experience operating and growing health care businesses to help the board evaluate and pursue strategies that will maximize RTI’s newly expanded products and capabilities.”
Water Street Healthcare Partners targets investments ranging from $50 million to $500 million in four health care sectors: distribution, medical products, health care services, and pharmaceutical products and services. The firm has particular expertise in corporate divestitures from healthcare companies. Water Street has more than $1 billion of capital under management and is based in Chicago (www.waterstreet.com).
“We are excited to partner with Water Street to complete this acquisition, and to add Curt and Ned’s expertise to our board,” said Brian Hutchison, president and chief executive officer, RTI. “The Pioneer acquisition puts RTI in a much stronger position to capitalize on future opportunities in orthopedics and biologics. Water Street’s extensive knowledge and network of relationships in the medical products sector will benefit our organization as we further advance our long-term strategic plan.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-17-13
