HealthpointCapital Announces the Successful Sale of CrossRoads Extremity Systems to DePuy Synthes, The Orthopaedics Company of Johnson & Johnson

NEW YORK and MEMPHIS, Tenn., Feb. 10, 2022 /PRNewswire/ -- HealthpointCapital Management LLC ("HealthpointCapital") is pleased to announce it has completed the sale of CrossRoads Extremity Systems ("CrossRoads, or the "Company") to DePuy Synthes, The Orthopaedics Company of Johnson & Johnson. The transaction marks the first exit for HealthpointCapital's Musculoskeletal Fund. HealthpointCapital acquired a majority stake in CrossRoads in May 2019 and proceeded to further the Company's position as the innovation leader in its segment.

CrossRoads, founded in 2014 and headquartered in Memphis, TN, is a pure-play, innovative designer and manufacturer of procedure-specific, sterile-packed implants and instruments for elective foot and ankle surgery. Under HealthpointCapital's ownership, CrossRoads also successfully broadened the Company's product portfolio with the asset acquisitions of First Ray LLC, Kator LLC and Mortise Medical LLC. These acquisitions added complementary product offerings and substantial intellectual property.

"Foot and Ankle surgery is a high growth sector in Orthopedics and the leading companies are searching for compelling, differentiated innovation," said HealthpointCapital President Mike Mogul. "We worked together with the excellent CrossRoads team, supported a massive increase in product launch velocity including acquisitions and significant development of the sales and marketing organizations as they created that compelling opportunity."

The Company's comprehensive portfolio is centered on differentiated products for foot surgery with proven benefits such as dynaBunion4D®, miniBunion3D® and DynaForce™ Staple Compression Plates. These "breakthrough technologies for faster healing" deliver improved operating room experience, simplicity and accuracy for the surgeon and better patient outcomes. In addition, CrossRoads' high-quality, reusable instrumentation and unique EcoSMART® instrument management program promotes efficient inventory management and improved economics for healthcare facilities. CrossRoads is led by co-founder and CEO Vernon Hartdegen and co-founder and VP of R&D Chad Hollis.  Both will join DePuy Synthes.

John H. Foster, HealthpointCapital CEO and Founder, said, "Our investment in CrossRoads is a great example of the HealthpointCapital thesis for building differentiated, high-performing musculoskeletal companies that can become cornerstone acquisitions for the large medtech strategics. The Company's exceptional execution of our strategic roadmap, financial plan and organizational design created a fast-growing foot and ankle industry leader. We are proud to have played a role in the Company's tremendous growth. Many thanks to the entire CrossRoads team for their contributions and successes." HealthpointCapital partners Mike Mogul, John Foster and Milen Todorov actively participated on the CrossRoads Board of Directors.

"As a long-term investor in CrossRoads, we chose to partner with HealthpointCapital to help realize the value that the CrossRoads team was creating," said Gary Stevenson, Co-Founder and Managing Partner of MB Venture Partners, "Through supporting and funding rapid product and market development including a key acquisition, the team was able to realize their full potential in creating one of the most exciting small companies in orthopedics."

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. acted as legal advisor and Morgan Stanley & Co. LLC served as exclusive financial advisor to CrossRoads.

About HealthpointCapital Management LLC:

HealthpointCapital, founded in 2002, is the leading private equity firm focused exclusively on the musculoskeletal sector. The Firm is led by CEO and founder John H. Foster and President Mike Mogul, former Group President at Stryker Corporation and former CEO of DJO Global, a former Blackstone portfolio company. HealthpointCapital brings together extensive medical device operating experience, a strong private equity track record, and an extensive network of clinical, distributor and strategic company relationships to help portfolio companies accelerate growth. Notable recent exits for HealthpointCapital include OrthoSpace (acquired by Stryker), Blue Belt Technologies (acquired by Smith & Nephew), and BioHorizons (acquired by Henry Schein). For more information, visit www.healthpointcapital.com.

For investor or media inquiries, please contact Tessa Cicitta, HealthpointCapital, 212-935-7780 or [email protected]

SOURCE HealthpointCapital Management LLC

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