|Xinrong's interbody fusion mesh--Courtesy of Xinrong|
Investment group Blackstone has reportedly made a $100 million investment into Chinese orthopedic device company Xinrong Best Medical Instrument Co. This is the firm's first foray into a medical investment in China, but in March it did take private Chinese tech outsourcing company Pactera Technology.
The company was founded in 2000 and has a "solid share of the domestic market" in orthopedic implants for trauma, spine and joints, according to a statement from Blackstone.
"Xinrong's founders have built a strong business producing high quality products through a solid network of distributors across China," Blackstone Senior Managing Director Yi Luo commented in a statement.
"With China's aging population and increasing disposable income, the market growth for orthopedic implants is significant. Together with the founders, we will strive to develop the best local expertise, maintain an international standard of technology, and increase the market share by enlarging the scale of our business," he continued.
Blackstone is no stranger to medical device investment. In 2007, Blackstone invested in Biomet along with a group of private equity investors including Goldman Sachs, Kohlberg Kravis Roberts and TPG Capital. Zimmer is slated to acquire the company for $13.4 billion. Blackstone also has a stake in DJO, an orthopedic specialist focused on rehabilitation, pain management and physical therapy.
The firm has almost $300 billion under management through investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds.