RTI previously announced plans to acquire all of the outstanding stock of Pioneer for $130 million in cash on June 12, 2013.
The transaction was funded through a combination of cash on hand, a 5-year $80 million senior secured credit facility, which includes a $60 million term loan and a $20 million revolving credit facility, from TD Bank, N.A., TD Securities “USA” LLC, and Regions Bank, and a $50 million concurrent private placement of convertible preferred equity from Water Street Healthcare Partners (Water Street), a strategic private equity firm focused exclusively on the health care industry.
Effective immediately, the new name of the company is RTI Surgical Inc. The company’s worldwide headquarters will remain in Alachua, Fla. and the stock will continue to trade on the Nasdaq Global Market under the symbol RTIX.As part of the transaction, RTI has appointed two representatives from Water Street to serve on its board of directors. Curt Selquist, an operating partner with more than 35 years of health care experience, will serve as a director. Prior to Water Street, Selquist was company group chairman of Johnson & Johnson Medical and Johnson & Johnson Healthcare Systems. Joining Selquist on the board is Ned Villers, a partner with Water Street who has invested in companies specializing in medical products and health care services since 1999. “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,” said Brian K. Hutchison, president and CEO of RTI Surgical. “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.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV