Actionable news
All posts from Actionable news
Actionable news in RTIX: RTI Surgical, Inc.,

Divests Cardiothoracic Closure Business to A&E Medical Corporation for up to $60 Million

ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical Inc. (RTI) (Nasdaq: RTIX), a global surgical implant company, today announced that it has sold its cardiothoracic closure business to A&E Advanced Closure Systems, LLC (A&E Medical), a leading cardiovascular medical device OEM and a portfolio company of Vance Street Capital LLC, for $54 million in cash plus an additional $6 million in contingent cash consideration. Concurrent with the sale of the business, RTI has entered into a multi-year Contract Manufacturing agreement whereby RTI will continue to support the cardiothoracic business under A&E Medical’s ownership through the manufacturing of existing products and the engineering, development and manufacturing of potential future products. RTI intends to use the proceeds from the sale to pay down a portion of its term loan as it extends the maturity of its existing credit facility through September 2019.

“The sale of our cardiothoracic closure business is a significant first step toward focusing our business and advancing our efforts to return RTI to long-term profitable growth through disciplined execution and building scale to extend distribution of our high-quality products in those areas that offer the greatest opportunities to benefit our customers, employees and shareholders,” said Camille Farhat, RTI chief executive officer. “We are in the initial stages of our journey and continue to take a methodical approach to evaluating our assets, the attractiveness of the markets in which they reside, our ability to successfully operate those businesses, and whether we are the right owner to grow them over the long term.”

The cardiothoracic closure business was one of several components of Pioneer® Surgical Technology, which RTI acquired in July of 2013. Through focused R&D and disciplined direct channel strategy, RTI grew the cardiothoracic closure franchise at a compounded annual growth rate of over 25% over the last five years, transforming the business into a leading global provider of cardiothoracic sternal metal cable and plating systems.

“We believe this sale is a great example of RTI’s core competency in...