Tornier Inc. readies $205 million IPO

June 8, 2010 by MedCity News

Minn.-based orthodpedic firm plans an estimated $205 million initial public offering

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By Thomas Lee

Tornier Inc. is planning to test the choppy waters of Wall Street with an estimated $205 million initial public offering, according to documents filed with the Securities and Exchange Commission.

The orthopedics firm in Edina, Minnesota, which specializes in devices to treat injuries to extremities and small bones, is the third local medical device company in two months to file for an IPO.

Last month, Electromed Inc. in New Prague said it’s seeking to raise $13.8 million. Kips Bay Medical Inc. of Plymouth, founded by Medtronic veteran Manny Villafana, filed for a $57.5 million stock offering.

While stock offerings are not set in stone, the IPO filings are good news for Minnesota’s medical technology industry, which has already seen ATS Medical Inc., Virtual Radiologic Corp., and ev3 Inc. exit the public markets via acquisitions in recent weeks.

AGA Medical Holdings Inc. in Plymouth was the last local medical device company to go public in November last year. The company raised $199.4 million, well short of the its target of $275 million.

In a region dominated by cardiovascular devices, Tornier has the potential to kick start a thriving local orthopedic industry, said Peter Bianco, director of lifescience business development at Nilan Johnson Lewis in Minneapolis and a former orthopedics executive at Johnson & Johnson.

‘Tornier is a well respected and extremely well managed company,” Bianco said.

Founded nearly 70 years ago by French entrepreneur Rene Tornier, the company was acquired in 2006 by private equity firms Warburg Pincus, The Vertical Group, Split Rock Partners in Eden Prairie, and its current CEO Douglas Kohrs, who formerly lead American Medical Systems Inc.