Carlyle’s investment in GTCR-backed Resonetics demonstrates how much growth potential there is in the medical device manufacturing sector — and why it’s attracting private equity investors. Mergers & Acquisitions asked GTCR to weigh in on why M&A in this space is just beginning to proliferate.
Carlyle’s deal values the target at around $2.25 billion. Founded in 1987, Resonetics is a micro-manufacturer of medical devices that are used primarily in minimally invasive procedures. Healthcare providers are constantly looking for ways to improve quality and safety while lowering costs to patients.
“As interventional medical devices become smaller and more complex, Resonetics’ unique manufacturing technologies are becoming increasingly important to the largest medtech OEMs,” GTCR managing director Sean Cunningham tells Mergers & Acquisitions, referring to original equipment manufacturers. GTCR first invested in Resonetics in 2018.
Resonetics has made eight add-on acquisitions under GTCR’s ownership. In May, the company acquired Distal Solutions. “The company’s been very successful driving organic growth and finding attractive add-on acquisitions of both companies and technologies. We expect to remain acquisitive going forward, as we expand our services to our medical device customers,” Cunningham adds.
Sounds like it’s a good time to be a PE dealmaker in the space.
– Demitri Diakantonis