FARMINGTON HILLS – Beringea announced that RTI Biologics, a provider of orthopedic and other biologic implants, plans to pay $130 million to acquire Marquette-based Pioneer Surgical Technology, a Beringea portfolio company.
Pioneer Surgical manufactures and distributes metal and synthetic products in the orthopedics, biologics, spine, trauma and cardiothoracic markets. Under the terms of the merger agreement, RTI will also acquire all the outstanding stock of Pioneer.
Beringea first invested in Pioneer in 2008; the exit is the third in three months for the private equity group, which includes Beringea?s London, UK affiliate, Beringea LLP.
Pioneer Surgical was founded in Marquette in 1992. Since that time, the company has developed successful products in the spine, biologics, orthopedics, and cardiothoracic markets. Pioneer has several facilities throughout the U.S. and in Houten, The Netherlands.
?We believe the combination of Pioneer and RTI will be a catalyst for continued growth,? said Daniel Webber, Pioneer?s president and chief executive officer. ?The combined company will have a broad portfolio of complementary surgical implants benefiting patients, surgeons and hospitals, as well as advancing the positive momentum we have built at Pioneer. Additionally, RTI?s culture of innovation is a great fit with that of our own employees.?
RTI?s expects the transaction will enhance RTI?s existing core competency in biologics processing with the addition of Pioneer?s core competency in metals and synthetics.
?The combination of RTI and Pioneer is an exciting opportunity for both companies and their employees,? said Brian K. Hutchison, RTI president and chief executive officer. ?This acquisition is strongly aligned with RTI?s long term strategic plan, accelerating new growth opportunities and gross margin expansion. Pioneer has built a strong distribution network for their implants, which will be beneficial when we launch our map3 cellular allogeneic bone graft later this year. This acquisition will bring immediate scale, allowing us to reach our strategic goals and take advantage of growth opportunities more quickly than either company could do independently.?
RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.
RTI is based in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.
