River Cities' portfolio company Pioneer Surgical Technology sold to RTI Biologics Inc. (Nasdaq:RTIX), a provider of orthopedic and biologic implants, for $130M. Michigan-based Pioneer is a leading medical technology company serving the orthopedics, biologics, spine, trauma and cardiothoracic markets.
River Cities first invested in Pioneer in 2006. Over the course of the Firm's investment, Pioneer nearly tripled revenues, expanded into the biologics market and developed a strong international presence.
"We are pleased with the strong performance of Pioneer during our investment period and the fantastic leadership exhibited by Dan Webber. Pioneer is a great fit for RTI and we look forward to the combined company becoming a leader in the global surgical-implant space," says River Cities' Rik Vandevenne.
"River Cities approached its investment as a collaborative partnership and provided support when Pioneer was enduring some of the most challenging industry conditions in the company's history. The team's expertise in sales and marketing, operational input and governance insight proved invaluable to our business. We are grateful for River Cities' commitment to the success of Pioneer and their role in helping the company find a strategic partner in RTI," says Dan Webber, Pioneer's president and chief executive officer.
The acquisition of Pioneer supports RTI's strategic initiatives to expand its current implant portfolio into metals and synthetics and to grow direct distribution. "We believe the combination of Pioneer and RTI will be a catalyst for continued growth," says Webber.
Pioneer exemplifies River Cities' growth-stage medical device strategy and represents the Firm's third favorable orthopedic exit in the last two years. River Cities has experienced a recent string of successful exits: Pioneer is the Firm's sixth healthcare sale and its 11th exit overall since 2010.