RTI Biologics Inc announced its intent to acquire privately held Pioneer Surgical Technology to expand its current implant portfolio into metals and synthetics and to gross direct distribution.
“This acquisition is strongly aligned with RTI’s long-term strategic plan, accelerating new growth opportunities and gross margin expansion,” Brian K Hutchison, president and chief executive officer of RTI, stated in a company press release. “Pioneer has built a strong distribution network for their implants, which will be beneficial when we launch our map3 cellular allogeneic bone graft later this year. 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.”
Under the terms of the merger agreement, RTI Biologics will pay $130 million in cash to acquire all the outstanding stock of Pioneer. RTI Biologics also agreed to a $50 million private placement of convertible preferred equity with Water Street which will be convertible into shares of RTI common stock and accrue dividends at a rate of 6% per year, subject to adjustment under specific conditions.