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Product / Company Performance

RTI Surgical to Become Pure-Play Spine Company with Sale of OEM Business -

RTI Surgical announced a definitive agreement for the sale of the company’s OEM business to Montagu Private Equity LLP, a European private equity firm. The deal includes $480 million in cash and other considerations that bring the transaction total to $490 million with a targeted close date in the first half of 2020.

Montagu Private Equity focuses on buyouts of companies in stable and growing sectors. The firm currently manages assets of approximately €4.3 billion across over 400 investments made in the last 50 years.

Through its OEM business, RTI supplied distributors with allograft implants for use in orthopedics, dental surgery, plastic surgery and urology. For the full year 2019, RTI expects OEM segment revenues of approximately $189 million and global spine segment revenues in the range of $118 million to $119 million. Per company President and CEO Camille Farhat, RTI Surgical will be debt-free with $175 million to $200 million in cash after the transaction closes.

The unburdened balanced sheet will drive further growth of the company's Novel Therapies segment that includes the coflex Interlaminar Stabilization and SImmetry SI joint fusion devices. coflex in particular will benefit from additional focus and resources, as it finished 3Q19 with softer than expected sales that played a role in RTI Surgical downgrading their 2019 revenue guidance by $20 million to a range of $305 million to $310 million.

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