RTI Surgical deals cardiothoracic biz to A & E Medical for $60m

RTI Surgical (NSDQ:RTIX) said today it sold its cardiothoracic closure business to Vance Street Capital portfolio company A&E Advanced Closure systems for $60 million. Through the deal, RTI Surgical will receive an initial $54 million in cash with an additional $6 million in contingent cash consideration for its cardiothoracic closure business, which was part of its Pioneer Surgical Technology acquisition in July 2013 and provides cardiothoracic sternal metal cable and plating systems. As part of the transaction, RTI Surgical said it inked a multi-year contract manufacturing agreement to continue to support the divested biz under A&E’s ownership, providing manufacturing of products and engineering, development and manufacturing of future products. “RTI’s cardiothoracic closure business is an excellent strategic fit with A&E Medical and we are excited to add its high-quality platform to A&E Medical’s global portfolio” Vance Street Capital partner Brian Martin said in prepared remarks. “This business is strategically aligned with A&E Medical’s growth areas and we look forward to working with RTI’s cardiothoracic closure team to integrate the combined portfolio of medical products and cardiovascular surgical solutions and provide customers with an even broader array of cardiothoracic medical product choices,” A&E Medical prez Eric Sklar said in a prepared statement. RTI said it plans to use funds from the sale to pay...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Mergers & Acquisitions Surgical RTI Surgical Source Type: news