Symmetry Surgical sold to Tecomet for $450M
SYMMETRY MEDICAL SELLING OEM SOLUTIONS (Orthopedics This Week)
Symmetry Medical Inc. will be selling its OEM Solutions business to Tecomet; it will also be transferring its Symmetry Surgical business to its shareholders. Tecomet, owned by Genstar Capital, is a contract manufacturing, engineering and metal fabrication technology company based in Wilmington, Massachusetts.
Symmetry President and CEO Thomas J. Sullivan stated in the August 4, 2014 news release, “We are excited to reach this agreement with Tecomet, which will recognize the value of the OEM Solutions business and enhance the growth potential of Symmetry Surgical. It also provides liquidity for our shareholders along with the upside potential of Symmetry Surgical as a well-positioned, standalone company focused on the large global market for surgical instruments.”
Mr. Sullivan added, “The proposed transaction has significant benefits for Symmetry Medical’s OEM Solutions customers and Symmetry Surgical customers. The merger with Tecomet will create an OEM business that can provide better service based on broader and more comprehensive capabilities. As a standalone company, Symmetry Surgical will be uniquely attentive to the needs of its customers across the breadth of the surgical instrument market with a distinct clinical and health economic focus without the distraction of implant or other more regulatory demanding product lines.”
Sullivan told OTW, “Subject to regulatory approval, we are pleased at the opportunity to create a new standalone Symmetry Surgical business and capture value for our shareholders through the sale of our OEM Solutions business to Tecomet, a Genstar Capital portfolio company. We believe that the combined $400+ million Symmetry Surgical/Tecomet business will be a strategic supplier that serves more than 450 customers worldwide with an enhanced “one stop shopping” offering in implants, instruments, and cases with more robust business continuity resources across Orthopedics, along with other medical device categories and aerospace.”
As for the timing, he noted, “There has been increasing interest in the orthopedic sector and contract manufacturing coupled with recent transactions imply a risk of customer and contract manufacturer consolidations.”
“At this time our focus is on closing the transaction and we will not speculate on any future plans. We will continue to operate the businesses separately until the transaction is closed.”