- Insider Newsletter
By Caitlyn Finnegan
RTI will pay $130 million in cash to acquire all of Pioneer’s outstanding stock, and the merger is still subject to customary closing conditions and regulatory approvals before closing in the third quarter of 2013. The acquisition will help biomedical-focused RTI position itself as a more diversified, global surgical implant company poised for growth in orthopedics and biologics.
“The combination of RTI and Pioneer is an exciting opportunity for both companies and their employees,” said Brian Hutchison, RTI president and CEO, in a statement Wednesday morning. “This acquisition is strongly aligned with RTI’s long-term strategic plan, accelerating new growth opportunities and gross margin expansion.”
Hutchison said Pioneer’s strong distribution network for implants will be beneficial when RTI launches its map3 cellular allogeneic bone graft later this year.
Pioneer manufactures and distributes synthetic and metal products in the spine, trauma, biologics and cardiothoracic markets.
RTI will remain in Alachua, and Brian Hutchison, RTI’s president and CEO, and Rob Jordheim, EVP and CFO, will retain their positions. The remainder of the executive management team will be comprised of current RTI management team members and some of the current Pioneer senior leadership.
The combined company will have 1,100 employees with manufacturing facilities in the United States and Germany and offices in the Netherlands. The new company is also expected to release a new name to reflect its expanded portfolio.