AI-generated analysis
A&E Medical Corporation's acquisition of RTI Surgical's Cardiothoracic Closure business enhances its product portfolio in sternal closure solutions, a critical area for cardiovascular surgery recovery. This strategic move positions A&E Medical as a more comprehensive provider with offerings like the Tritium® SPC System and advanced sternal cables, complementing its existing DoubleWire product line. The deal strengthens A&E's market presence in North America by integrating RTI Surgical's leadership position in innovative sternal closure technologies.
The transaction was valued at $54 million for a 100% stake, reflecting the target’s robust growth trajectory under RTI Surgical’s ownership over the past five years. Financing included senior debt from BMO Harris Bank and BBVA Compass, along with mezzanine financing from Madison Capital Funding LLC, demonstrating A&E Medical's commitment to expanding its market share through strategic acquisitions.
Competitively, this acquisition solidifies A&E Medical’s position as a leader in sternal closure devices, potentially disrupting the existing competitive landscape. By leveraging RTI Surgical’s technology and expertise, A&E Medical can better compete with established players such as Medtronic and Johnson & Johnson by offering differentiated products and enhancing its engineering capabilities.
Post-acquisition, key risks include integrating RTI Surgical's product lines into A&E Medical’s portfolio without disrupting operations or losing market momentum. Additionally, regulatory compliance in the medical device sector remains a significant challenge. However, the combination presents growth vectors through expanded distribution channels and continued innovation in sternal closure solutions.
A&E Medical (US), a portfolio company of Vance Street Capital, acquired RTI Surgical's Cardiothoracic Closure business (US) for $54 million on August 9, 2017. The deal aims to enhance A&E Medical's sternal closure product portfolio and expand its market presence in North America.
| Acquirer | A&E Medical (US) |
| Target | RTI Surgical's Cardiothoracic Closure business (US) |
| Deal value | $54 million |
| Type | Acquisition |
| Close date | August 9, 2017 |
| Sell-side financial advisor(s) | Stephens Inc. |
| Sell-side legal advisor(s) | Holland & Knight LLP |
| Buy-side legal advisor(s) | Paul Hastings LLP |
The acquisition is intended to bolster A&E Medical’s engineering and product development capabilities in the sternal closure market. RTI Surgical's Cardiothoracic Closure business, known for its cable-based plate products such as the Tritium® SPC System and advanced sternal cables, complements A&E Medical’s existing offerings including the DoubleWire system.
“This acquisition will enhance our product lineup and strengthen our presence in key North American hospitals,” said Eric Sklar, President of A&E Medical. “We look forward to integrating RTI Surgical's innovative products into our portfolio.”