Back to Blog June 13, 2013 in

RTI Biologics to Buy Implant Maker Pioneer Surgical for $130M Cash

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RTI Biologics Inc. has agreed to buy medical technology firm Pioneer Surgical Technology for $130 million in cash as the maker of biologic implants looks to expand its current implant portfolio into metals and synthetics and to grow direct distribution.


Based in Marquette, Mich., publicly traded Pioneer makes metal and synthetic products in the orthopedics, biologics, spine, trauma and cardiothoracic markets.


Pioneer had raised at least $45 million from venture investors. in 2008 it raised $15 million in Series B financing led by InvestMichigan Growth Capital Fund, joined by existing investors Highlander Partners, Hopewell Ventures, Pharos Capital Group and River Cities Capital Funds. It earlier raised a $30 million Series A round in 2006.


The deal will give RTI a more diversified business through the addition of metal and synthetic devices, including a synthetic biologics platform, while maintaining the company’s natural biologics implant portfolio.


It will also expand RTI ‘s international reach while simultaneously bolstering its U.S. distribution network.


“This acquisition is strongly aligned with RTI ‘s long term strategic plan, accelerating new growth opportunities and gross margin expansion,” RTI Chief Executive Brian K. Hutchison said. “Pioneer has built a strong distribution network for their implants, which will be beneficial when we launch our map3 cellular allogeneic bone graft later this year.”

After the merger transaction is complete–likely in the third quarter–Mr. Hutchison and Chief Financial Officer Robert Jordheim will continue to serve in their respective roles. The combined company will be based in Alachua, Fla.

RTI also agreed to a $50 million private placement with Water Street Healthcare Partners. TD Bank, TD Securities $80 million senior secured facility, including a $60 million term loan and a $20 million revolving credit facility.

Write to Saabira Chaudhuri at [email protected]