Private equity firm GTCR announced that its portfolio company Resonetics has purchased Caribou Technologies, a supplier of centerless grinding, forming, coiling, machining and laser processing for the medical device industry. The acquisition is intended to expand Resonetics’ capabilities in the sector as well as adding an additional flagship facility in the Minneapolis region. The terms of the deal were not disclosed.
GTCR first invested in Resonetics in February 2018. The investment was made in partnership with medical device industry executive Robert “Chip” Hance through Regatta Medical, a GTCR portfolio company. Since February 2018, Hance has partnered with Resonetics’ executive team to improve earnings performance and pursue strategic acquisitions to further GTCR’s investment.
Hance, currently the executive chairman of Resonetics, commented on the deal, noting that the acquisition of Caribou was “consistent with our initial investment thesis for Resonetics” and would “strategically enhance the company's capabilities, geographic reach and customer portfolio:” “We believe that the recent acquisitions combined with the company's strong organic growth have established Resonetics as a leading supplier of specialized componentry for interventional medical device companies."
GTCR managing director Sean Cunningham concurred with Hance, stating “we have great respect for what the Caribou team has built over many years, and we look forward to our partnership with them…this represents Resonetics' third acquisition of a founder-owned business, and we expect to continue aggressively pursuing tuck-in acquisitions as well as more transformative opportunities."
The acquisition of Caribou is Resonetics’ third such deal in a year. The company previously bought Swiss medical device supplier Medelec and Israeli laser processing supplier STI Laser Industries. Together, these three acquisitions are aimed at furthering Resonetics’ goal of becoming a market leader in regard to the precision micro-manufacturing of complex componentry for interventional medical devices.
Though the exact financial terms were not released, GTCR did make public that the deal was partially funded from GTCR Fund XII, a private equity fund with $5.25 billion in current limited partner equity capital commitments. Legal counsel was provided by Kirkland & Ellis while PricewaterhouseCoopers acted as accounting advisor to GTCR.