Water Street Completes Investment in RTI Biologics Inc.

Health Care Firm's Investment Supports RTI with Strategic Acquisition; Two Partners Appointed to RTI Board

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Jul 16, 2013, 04:10 ET

CHICAGO, July 16, 2013 /PRNewswire/ -- Water Street Healthcare Partners, a strategic private equity firm focused exclusively on the health care industry, announced today that it has completed an investment in RTI Biologics Inc. (RTI). Headquartered in Alachua, Fla., RTI specializes in orthopedic and other biologic implants. Water Street has invested a $50 million private placement of convertible preferred equity to support RTI with acquiring Pioneer Surgical Technology (Pioneer). The acquisition transforms RTI into one of the world's leading providers of surgical implants.

As part of the transaction, RTI has appointed two representatives from Water Street to serve on its board of directors. Curt Selquist, an operating partner with more than 35 years of health care experience, will serve as a director. Prior to Water Street, Mr. Selquist was company group chairman of Johnson & Johnson Medical and Johnson & Johnson Healthcare Systems. Joining Mr. Selquist on the board is Ned Villers, a partner with Water Street who has invested in companies specializing in medical products and health care services since 1999.

"We are excited to partner with Water Street to complete this acquisition, and to add Curt and Ned's expertise to our board," said Brian K. Hutchison, president and chief executive officer, RTI. "The Pioneer acquisition puts RTI in a much stronger position to capitalize on future opportunities in orthopedics and biologics. Water Street's extensive knowledge and network of relationships in the medical products sector will benefit our organization as we further advance our long-term strategic plan."

The Pioneer acquisition expands RTI's portfolio of natural biologic implants to metal and synthetic devices. It also extends RTI's direct distribution network to 47 countries and enhances its international footprint. With the addition of Pioneer's business, RTI employs approximately 1,100 people and operates facilities in Germany, The Netherlands and the United States. Together, the companies offer a comprehensive range of surgical implants for use in orthopedic, spine, trauma and cardiothoracic procedures. The new name of the company is RTI Surgical Inc.

"Our team is pleased to have played a role in bringing RTI and Pioneer together to create a market leader in the growing field of biosurgery," said Mr. Selquist. "We look forward to contributing our years of experience operating and growing health care businesses to help the board evaluate and pursue strategies that will maximize RTI's newly expanded products and capabilities."

RTI is Water Street's most recent partnership with a health care company to complete a market-leading acquisition. The firm has facilitated numerous strategic combinations that have built market-leading companies in outpatient rehabilitation services, patient safety identification solutions and distribution of specialty medical products. RTI is Water Street's first private placement in a corporation.

RTI expands Water Street's group of companies specializing in medical products, distribution, health care services, and pharmaceutical products and services to 13. Water Street is seeking new opportunities to partner with health care corporations and middle-market businesses interested in accelerating growth. Its investments range in size from $50 to $500 million.

About RTI Surgical Inc.

RTI Surgical is a leading global surgical implant company providing surgeons with safe biologic, metal and synthetic implants. Committed to advancing science, safety and innovation, RTI's implants are used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures and are distributed in more than 47 countries. RTI is headquartered in Alachua, Fla., and has four manufacturing facilities throughout the U.S. and Europe. RTI is accredited in the U.S. by the American Association of Tissue Banks and is a member of AdvaMed.

About Water Street

Water Street is a strategic private equity firm focused exclusively on health care. The firm has a strong record of building market-leading companies across key growth sectors in health care. It has worked with some of the world's leading health care companies on its investments including Gentiva, Johnson & Johnson, Medtronic and Smith & Nephew. Water Street's team is comprised of industry executives and private equity professionals with decades of experience investing in and operating global health care businesses. The firm is headquartered in Chicago. For more information about Water Street, visit waterstreet.com.

SOURCE Water Street Healthcare Partners