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| RTI Biologics CEO Brian Hutchison |
RTI Biologics has inked a deal to buy Michigan's Pioneer for $130 million in cash, planning to roll the company's technology into its fleet of implants.
To fund the buyout, RTI has secured an $80 million senior secured facility from TD Bank and a $50 million private placement from Water Street, and the company expects to close the deal next quarter.
In exchange, RTI gets Pioneer's 300 employees and fleet of metal and synthetic products used in orthopedic, biologic, spine, trauma and cardiothoracic implants, stretching out RTI's offerings and spreading its distribution reach through Pioneer's already established network. That'll come in handy when RTI launches its map3 cellular allogeneic bone graft later this year, CEO Brian Hutchison said, pacing the company to continue growing over the coming years.
"This acquisition is strongly aligned with RTI's long-term strategic plan, accelerating new growth opportunities and gross margin expansion," Hutchison said in a statement. "... 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."
RTI has been working to expand its share of the biologic implant market over the last year, launching the Fortiva dermis implant last week, a device used in hernia repair surgeries. In March, the company kicked off marketing for the Tutomesh, Cortiva and Tutopatch, cow-tissue-based implants designed for the same procedure.
- read the announcement