GTCR, a leading private equity firm, announced today that it has completed the acquisitions of Medelec and STI Laser Industries, adding to its Resonetics platform. The acquisitions further Resonetics’ strategy of building a leading company focused on precision micro-manufacturing for interventional medical devices and expand its capabilities into commercial scale nitinol manufacturing, specialty tubing fabrication, and CNC machining.
GTCR made its initial investment in Resonetics in February 2018, in partnership with medical device industry executive Robert “Chip” Hance.
GTCR initially partnered with Mr. Hance in April 2017 to pursue opportunities in the medical device sector, and the investment in Resonetics represented another example of how GTCR executes The Leaders Strategy™.
Resonetics is a leading medical device contract manufacturing organization, specializing in laser micro-manufacturing for interventional medical devices. Under the leadership of Mr. Hance, Resonetics CEO Tom Burns and the Resonetics team, the company continues to execute on its organic growth initiatives and aggressive pursuit of follow-on acquisitions. The additions of Medelec and STI broaden Resonetics’ strategic capabilities, geographic footprint and scale.
Based in Puidoux, Switzerland, Medelec was founded in 1952 and has evolved over three generations of ownership by the Butty family. The company specializes in fabricating stainless steel and precious metal tubing used as a key input to many interventional medical devices. The acquisition of Medelec vertically integrates Resonetics and secures a critical component of its supply chain. Similar to Resonetics, Medelec also offers precision laser manufacturing and CNC machining services. With these capabilities in Switzerland, Resonetics is strategically positioned to serve its growing base of European customers and expand its global operations.
Based in Israel, a key innovation hub for medical devices, STI is widely recognized for its expertise in nitinol manufacturing and laser processing for interventional medical devices. STI was founded in 1998 by Tovy Sivan, who has served as its President & CEO throughout the company’s history. With the acquisition of STI, Resonetics is an emerging leader in nitinol manufacturing, and now operates from a global network of eight facilities strategically located near many of the key medical device innovation hubs, such as Boston, Minneapolis, California, and Israel.
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Dean Mihas, Managing Director and Head of GTCR’s Healthcare Group, commented “We are excited to add Medelec and STI. Together with Resonetics, they form a global leader serving the interventional medtech industry with specialized, precision manufacturing services.”
Sean Cunningham, Managing Director at GTCR, added “These acquisitions strategically expand Resonetics’ capabilities, scale and geographic reach. We are adding unique services to serve our medical device customers, and we will continue to aggressively pursue add-on acquisitions to supplement Resonetics’ strong organic growth.”
The acquisitions of Medelec and STI were partially funded from GTCR Fund XII, a private equity fund raised in 2017 with $5.25 billion of limited partner equity capital commitments. Kirkland & Ellis LLP provided legal counsel and PricewaterhouseCoopers served as accounting advisor to GTCR.
Date: November 5, 2018
Source: globalFDI
