RTI acquires Pioneer, becomes RTI Surgical
Published: Tuesday, July 16, 2013 at 6:11 p.m.
Last Modified: Tuesday, July 16, 2013 at 6:11 p.m.
RTI Biologics completed its $130 million acquisition of Marquette, Mich.-based Pioneer Surgical Technology and changed its name to RTI Surgical Inc., the company announced Tuesday.
RTI adds synthetic and metal surgical implants to its portfolio of implants manufactured from human-donated tissue and animal tissue. The deal also expands the company's worldwide distribution network.
The combined company has 1,100 employees, with Pioneer bringing about 300, including nearly 100 who work outside the U.S. It adds facilities in Michigan, Greenville, N.C., The Netherlands and Germany to RTI's existing facilities in Florida, Germany and France.
"The acquisition of Pioneer supports RTI's strategic initiatives to expand our current implant portfolio into metals and synthetics, grow direct distribution and increase our global footprint," President and CEO Brian Hutchison said in a news release. "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."
Headquarters will remain in Alachua, where RTI has more than 500 employees in Progress Corporate Park. The company will continue to trade on the Nasdaq Global Market under the symbol RTIX.
RTI had $178.1 million in revenues in 2012 and Pioneer had $88 million.
The deal was funded through $80 million in credit from three financial institutions and cash.
Financing also included a $50 million private investment from Water Street Healthcare Partners, a private equity firm. Curt Selquist and Ned Villers of Water Street were appointed to RTI's board of directors.
RTI was originally called Regeneration Technologies Inc. after spinning out of the University of Florida Tissue Bank in 1998 and was renamed RTI Biologics after merging with Tutogen Medical in 2008.