US-based RTI Biologics, a manufacturer of orthopaedic and other biologic implants, has completed the acquisition of Pioneer Surgical Technology for $130m in an all-cash deal.
RTI Biologics announced its plans to acquire Pioneer on 12 June 2013.
RTI Biologics funded the acquisition deal through a mix of cash on hand, and a five-year $80m senior secured credit facility, which comprises a $60m term loan and a $20m revolving credit facility from TD Bank, TD Securities USA, and Regions Bank, and a $50m concurrent private placement of convertible preferred equity from Water Street Healthcare Partners, a private equity firm.
With the completion of the transaction, RTI Biologics has become RTI Surgical. However, it will retain its global headquarters in Alachua, Florida and its stock will continue to trade under the symbol of RTIX on the Nasdaq Global Market.
As part of the deal, RTI has appointed two Water Street representatives - Curt Selquist and Ned Villers as board of directors.
RTI Surgical CEO and president Brian K. Hutchison noted that the acquisition of Pioneer supports RTI's strategic initiatives to expand its current implant portfolio into metals and synthetics, grow direct distribution and increase its global footprint.
"RTI Surgical is now positioned for growth as a global surgical implant company providing orthopedic and biologic implant solutions for surgeons and patients around the world. We are excited about the many opportunities this acquisition brings to the company," Hutchinson added.
