RTI Biologics (NSDQ:RTIX) hopes a $130-million acquisition of Pioneer Surgical will help strengthen distribution and allow the company to expand into metal and synthetic implants. RTI today announced its intent to acquire Pioneer in a cash deal to acquire all of Pioneer’s outstanding stock.
Florida-based RTI deals in orthopedic and biological implants used in orthopedic, dental and other specialty surgeries. The company says it was the 1st to offer precision-tooled bone implants and that it invented sterilization processes that have been used on more than 5 million implants with "zero incidence of implant-associated infection."
Pioneer is a Michigan-based company of about 300 employees, with facilities in the U.S. and the Netherlands developing spine, biologics, orthopedics and cardiothoracic products.
RTI said the merger is fits within the company’s long-term strategy to add metals and synthetic devices to its product portfolio, including synthetic biologics and allograft and xenograft implants. RTI will also absorb Pioneer’s distribution organization, which could present opportunities for cross distribution.
"The transaction will be funded through a combination of cash on hand, a new credit facility and a concurrent private placement of convertible preferred equity from Water Street Healthcare Partners," RTI said in a company statement.
RTIX shares were flat at $4.40 as of about 12:15 p.m. today.