Tecomet Completes Acquisition of Symmetry's OEM Business

Tecomet (Wilmington, MA, USA) has completed the acquisition of the Symmetry Medical (Warsaw, IN, USA) original equipment manufacturing (OEM) solutions business.

The acquisition, for USD 450 million, creates the largest orthopedic OEM manufacturer in the world, with 18 facilities located on three continents. And while OEM represented about 80% of Symmetry Medical's revenues, the deal value is more than the valuation of the entire company. What remains of Symmetry Medical will become a new, publicly traded company called Symmetry Surgical, and Symmetry Medical shareholders will receive one share in the new company for every four shares they hold.

In a press statement, Tecomet, a Genstar Capital (San Francisco, CA, USA) portfolio company, said that the strategic capabilities of the Symmetry Medical OEM Solutions, a leading supplier of contract manufacturing and product solutions for the surgical instrument, orthopedic implant, and sterilization case and tray markets, will provide a complementary fit with existing Tecomet business, which includes orthopedic implants, precision surgical instruments, trauma plates and photochemical etched products for medical device customers.

“With this acquisition, Tecomet adds to an already wide array of services and creates a footprint that would take decades to build organically,” said Bill Dow, CEO of Tecomet. “We will continue to be dedicated to providing our customers the best service at the highest level of quality at competitive prices.”

“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,” said Thomas J. Sullivan, President and CEO of Symmetry Medical. “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.”

“This is a great opportunity to have a transforming impact on the orthopedic contract manufacturing industry. Original equipment manufacturers are moving more of their manufacturing out to contract manufacturers that can handle the volume and provide the systems support,” added Genstar Capital principal Rob Rutledge. “This merger provides a contract manufacturing platform paramount to anything else in the orthopedic industry.”

Tecomet is also a leading manufacturer of precision components to the aerospace and defense industry, producing products used in missile and satellite propulsion systems, vision systems, and infrared applications.

Related Links:
Tecomet
Symmetry Medical
Genstar Capital