My 7 thoughts.
The merger of Tyber Medical, Intech, and Resolve Surgical Technologies, facilitated by Montagu, is driven by several strategic motivations:
- Scale and Synergy:
- Manufacturing and Design Expertise: Each company brings unique strengths. Intech offers global manufacturing capabilities, particularly in complex orthopaedic devices. Resolve specializes in design, development, and lifecycle management, focusing on spine and cardiothoracic markets. Tyber Medical adds its expertise in rapid, private-label development with significant speed to market. Combining these capabilities creates a more robust service offering for OEMs, reducing the time from design to market and enhancing product quality and innovation.
- Manufacturing and Design Expertise: Each company brings unique strengths. Intech offers global manufacturing capabilities, particularly in complex orthopaedic devices. Resolve specializes in design, development, and lifecycle management, focusing on spine and cardiothoracic markets. Tyber Medical adds its expertise in rapid, private-label development with significant speed to market. Combining these capabilities creates a more robust service offering for OEMs, reducing the time from design to market and enhancing product quality and innovation.
- Market Leadership and Expansion:
- Comprehensive Service Platform: By merging, the entities aim to become a leading supplier in the medical device sector, offering an integrated solution from concept to market. This positions them to capture a larger share of the market by serving as a one-stop shop for medical technology companies, potentially leading to increased market penetration and new customer acquisition.
- Comprehensive Service Platform: By merging, the entities aim to become a leading supplier in the medical device sector, offering an integrated solution from concept to market. This positions them to capture a larger share of the market by serving as a one-stop shop for medical technology companies, potentially leading to increased market penetration and new customer acquisition.
- Innovation Acceleration:
- Shared Innovation Culture: All three companies have a history of innovation. The merger allows for pooling of R&D resources, leading to faster innovation cycles. This is particularly crucial in the medical device industry where staying ahead in technology can significantly impact market positioning and patient care standards.
- Shared Innovation Culture: All three companies have a history of innovation. The merger allows for pooling of R&D resources, leading to faster innovation cycles. This is particularly crucial in the medical device industry where staying ahead in technology can significantly impact market positioning and patient care standards.
- Efficiency and Cost Savings:
- Operational Efficiency: Integrating manufacturing, design, and supply chain management under one umbrella can lead to significant cost savings through economies of scale, shared resources, and streamlined operations. This includes better utilization of manufacturing facilities across different continents, reducing overheads, and optimizing supply chain logistics.
- Operational Efficiency: Integrating manufacturing, design, and supply chain management under one umbrella can lead to significant cost savings through economies of scale, shared resources, and streamlined operations. This includes better utilization of manufacturing facilities across different continents, reducing overheads, and optimizing supply chain logistics.
- Customer Base Expansion and Retention:
- Enhanced Customer Value Proposition: The merged entity can offer more comprehensive services, ensuring they meet the evolving needs of their OEM customers more effectively. This not only helps in retaining existing customers by providing them with a broader spectrum of services but also attracts new clients looking for a partner capable of handling diverse and complex projects.
- Enhanced Customer Value Proposition: The merged entity can offer more comprehensive services, ensuring they meet the evolving needs of their OEM customers more effectively. This not only helps in retaining existing customers by providing them with a broader spectrum of services but also attracts new clients looking for a partner capable of handling diverse and complex projects.
- Competitive Advantage:
- Differentiation in a Competitive Market: The medical device industry is highly competitive with a constant need for differentiation. This merger creates a unique entity with a wide array of proprietary technologies and services, which can be a significant differentiator when competing for large contracts or against other major players in the field.
- Differentiation in a Competitive Market: The medical device industry is highly competitive with a constant need for differentiation. This merger creates a unique entity with a wide array of proprietary technologies and services, which can be a significant differentiator when competing for large contracts or against other major players in the field.
- Investment and Growth Strategy:
- Montagu’s Vision: Montagu’s involvement suggests a strategic investment in building a dominant player in the sector. Their expertise in mid-market private equity, particularly in healthcare, likely sees this merger as a way to unlock and accelerate growth, potentially preparing the company for future exits or further market expansions.
In summary, the motivation for this merger is to create a synergistic powerhouse in medical device manufacturing and innovation, aiming for market leadership, operational efficiencies, and enhanced service delivery to meet the global demand for advanced medical technologies.
Montagu announced today its intention to create a world-leading medical devices supplier by supporting the merger of Tyber Medical, Intech and Resolve Surgical Technologies (“Resolve”).
As part of the transaction, Montagu entered into a definitive agreement to acquire Tyber Medical, an innovative medical device company providing private label development and manufacturing services to med-tech Original Equipment Manufacturers (OEMs). Subject to customary regulatory approvals and closing conditions, Tyber Medical will be combined with Montagu’s existing investments in Resolve, a leading provider of contract device design, manufacturing, and lifecycle management services, as well as in Intech, a leader in the co-development and manufacturing of complex orthopaedic surgical devices.
The combined entity will offer a unique mix of proprietary market-cleared technologies, and development and manufacturing scale, that will enable its OEM customers to achieve unmatched speed to market and improve the resiliency and effectiveness of their supply chain. At the time of the merger, the platform will be a leading contract supplier of systems for Spine, Trauma, Extremities, Sports Medicine and Enabling Technologies, with plans to expand its pioneering innovation-led model into additional markets. The planned merger will support accelerated innovation and help improve standards of care for patients globally.
Jeff Tyber, Founder and CEO at Tyber Medical said: “Tyber Medical’s proven track record of successful global launches, averaging 12 months from signing to launch, has revolutionized how our partners expand their portfolios and adapt to the evolving market dynamics. This strategic combination brings together the size, scale, and expertise of Intech, along with Resolve’s deep knowledge in the Spine and Cardiothoracic fields. We are delighted to be partnering with Montagu, a leading investment firm in the private label OEM sector, and we share their vision of creating an industry champion.”
“This unique combination represents a significant milestone, enhancing our ability to serve medical technology companies worldwide,” said Laurent Pruvost, President and CEO of Intech. “By combining Intech’s global manufacturing footprint and know-how with Resolve and Tyber’s tailored solutions, we will establish ourselves as the undisputed partner of choice in the industry.”
Megan Osorio, President and CEO of Resolve said: “Bringing innovation to market with speed and quality is of the utmost importance to our OEM customers. Joining forces will increase our ability to support their growth across the full range of orthopaedic implants & instruments by bringing the deep experience of our respective teams and scale of our manufacturing footprint together.”
Adrien Sassi, Partner at Montagu said: “Montagu is proud to support the creation of this world-class medical device platform. The three organisations share similar passion and focus on delivering innovative, high-quality, reliable solutions to OEM customers, surgeons, and patients. We look forward to partnering with Jeff Tyber and his talented team, as well as extending our successful collaboration with Intech and Resolve.”
Houlihan Lokey and Dechert LLP, respectively, acted as exclusive financial advisor and legal advisor to Tyber Medical. Weil Gotshal & Manges acted as legal advisor to Montagu, Intech and Resolve.
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About Intech
Intech is a global leader in the manufacturing of orthopaedic devices and mission-critical components. With facilities in the USA, Europe, and Asia-Pacific, the group excels in producing surgical implants, instruments, cutting tools, handles, and sterilization containers. With innovation at heart, Intech is at the forefront of contract-design and contract-manufacturing in the field of Orthopaedics and Healthcare. Intech is also home to SMADE, its IoMT division that offers smart tracking of geolocation, sterilisation cycles, and usage of surgical containers on the field. For more information, visit https://intech-medical.com/.
About Resolve Surgical Technologies
Resolve Surgical Technologies is an industry-leading private label OEM that designs, develops and manufactures metal and polymer implants and instruments serving the orthopaedics, spine and cardiothoracic markets. Originally founded in 1992 as Pioneer Surgical Technology, Inc. and later known as the Metals division of RTI Surgical, Resolve became known for their innovative designs and engineering expertise. Today, Resolve Surgical focuses on creating value as an extension of our OEM partners’ teams to deliver innovation, accelerate speed to revenue and drive lifecycle management with robust quality and regulatory support. For more information, visit www.resolvesurg.com.
About Tyber Medical LLC
Tyber Medical LLC is a leading orthopaedic device manufacturer providing rapid access to FDA-cleared and CE-marked, private label, portfolio-enhancing regulatory-approved orthopaedic implants for the spinal, extremity, and trauma markets. Since its founding in 2012, the company has released more than 50 spine, extremity, and trauma systems. Tyber Medical aims to develop and utilize differentiated bioengineered technologies, including surface treatments and coatings, to advance orthopaedic science. For more information, visit https://tybermedical.com/.
About Montagu
Montagu is a leading mid-market private equity firm, committed to finding and growing businesses that make the world work. Focussing on businesses with a must-have product or service in a structurally growing marketplace, Montagu brings proven growth capabilities to help companies achieve their ambitions and unlock their full potential. Montagu specialises in carve-out and other first time buyout investments and has deep expertise in five priority sectors: Healthcare, Financial Sector Services, Critical Data, Digital Infrastructure and Education. ESG forms an integral part of its strategy, and its commitment to responsible investment is fully integrated into its investment and value-creation process. Montagu partners with companies with enterprise values between €200 million and €1 billion and has €12bn assets under management. For additional information on Montagu, visit www.montagu.com
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