UPDATE: Symmetry Medical to Sell OEM Solutions Business to Tecomet, Spinoff Surgical Unit
Tecomet Inc., a Genstar Capital portfolio company and precision contract manufacturer supporting the medical device and aerospace industries, today announced that it has signed a definitive agreement with Symmetry Medical Inc. (NYSE: SMA) to acquire its OEM Solutions business segment for $450 million.
Headquartered in Warsaw, Indiana, OEM Solutions manufactures high precision surgical instruments, orthopedic implants, and plastic and metal sterilization cases and trays, selling its products to global medical device OEMs. OEM Solutions has over 450 customers, nearly 2,300 employees and 13 facilities in the U.S., the U.K., Ireland, France and Malaysia.
Bill Dow, Chief Executive Officer of Tecomet, said, "The combination of Tecomet and OEM Solutions creates a contract manufacturing enterprise that is capable of meeting the growing needs of our customers. OEM Solutions will not only extend the capabilities we offer but also our global reach. Our experienced and successful Tecomet team looks forward to working with OEM Solutions' strong management crew and workforce to offer exceptional products, services and capabilities to the industries we serve."
Rob Rutledge, who leads Genstar's industrial technology vertical said, "OEM Solutions and Tecomet share a reputation for providing world-class products for their customers' most demanding medical device applications. Genstar is excited to be supporting Tecomet in this combination of two great companies in the contract manufacturing industry, and believes the combined company will provide its customers with an enhanced set of capabilities."
The transaction is expected to be completed in the fourth quarter and is subject to customary closing and regulatory approvals.
UBS Investment Bank is acting as exclusive financial advisor and Weil, Gotshal & Manges LLP is acting as legal advisor to Tecomet in connection with the transaction.
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