logo
Share SHARE
FONT-SIZE Plus   Neg

RTI Biologics To Buy Pioneer Surgical Technology - Quick Facts

RTI Biologics Inc. (RTIX), a provider of orthopedic and other biologic implants, plans to acquire privately held Pioneer Surgical Technology, headquartered in Marquette, Mich. The Pioneer acquisition supports RTI's strategic initiatives to expand its current implant portfolio into metals and synthetics and to grow direct distribution.

Pursuant to the merger agreement, RTI would pay $130 million cash to acquire Pioneer's outstanding stock. RTI said it has received a commitment from TD Bank, N.A., TD Securities "USA" LLC and Regions Bank for a 5-year, $80 million senior secured facility, including a $60 million term loan and a $20 million revolving credit facility. Further, RTI has agreed to a $50 million private placement of convertible preferred equity with Water Street, a healthcare-focused private equity firm.

RTI's president and chief executive stated, "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."

The transaction, which may close in the third quarter of 2013, would be funded via. a combination of cash on hand, a new credit facility and a concurrent private placement of convertible preferred equity from Water Street Healthcare Partners.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
Follow RTT