Carlyle and GTCR Announce Strategic Investment in Resonetics
Investment to Support Continued Growth and Expansion of Specialized Medical Device Contract Manufacturer
Nashua, NH, New York, NY and Chicago, IL - Global investment firm Carlyle (NASDAQ: CG) announced today that funds managed by Carlyle have acquired a significant interest in medical device contract manufacturer Resonetics, valuing the company at approximately $2.25 billion. Carlyle will join existing investor GTCR, a leading private equity firm, as a meaningful shareholder in the company.
Founded in 1987 and headquartered in Nashua, New Hampshire, Resonetics is a leading provider of micro-manufacturing for innovative medical devices in high-growth therapeutic areas and end markets. The company is focused on producing highly technical componentry for medical device applications, providing its customers with a broad range of services across the product lifecycle, from design & development to high-volume manufacturing. The company’s underlying end-markets are seeing robust growth, as clinicians shift away from higher-risk, invasive procedures, toward more interventional approaches. These minimally invasive procedures are also driving increased miniaturization of devices, diversity of materials, and demand for complex and precise componentry, which are best suited for Resonetics’ micro-manufacturing capabilities.
“We are grateful to continue our partnership with the exceptional management team at Resonetics as they look to expand on the Company’s ongoing growth trajectory,” said Sean Cunningham, Managing Director at GTCR. “Under GTCR’s ownership, Resonetics has continued to drive robust organic growth while completing eight add-on acquisitions, including the recent acquisitions of FISO Technologies Inc. and Hudson Medical Innovations this past month. We look forward to working with the Carlyle team again to continue to aggressively pursue add-on acquisitions and seek to drive organic growth through commercial and operational initiatives.”
“With a long history of working alongside GTCR, we’re excited to partner with the talented Resonetics management team to accelerate the healthcare platform’s next chapter of growth,” said Steve Wise, a Carlyle Managing Director and Head of Global Healthcare. “By leveraging Carlyle’s global network to open up new avenues of organic opportunities such as international expansion and digitization, as well as increasing scale through accretive acquisitions, we believe there are multiple avenues for future value creation.”
“We are thrilled to be partnering with Carlyle as we continue to build upon the growth we’ve achieved in partnership with GTCR,” said Tom Burns, CEO, Resonetics. “Our business has advanced significantly over the past four years, expanding on our scale and capabilities and becoming an increasingly valuable partner to our customers, and we look forward to keeping the momentum going.”
The investment in Resonetics is a continuation of Carlyle’s long-term global commitment to healthcare in which it has invested more than $21 billion of equity since inception. Carlyle’s significant experience investing in medical products businesses includes Medline, Ortho Clinical Diagnostics, Unchained Labs, and MicroPort, amongst others.
Kirkland & Ellis acted as legal advisor and Piper Sandler acted as financial advisor to Resonetics and GTCR. Debevoise & Plimpton acted as legal advisor and Barclays acted as financial advisor to Carlyle.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $293 billion of assets under management as of September 30, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Growth Business Services, Technology, Media & Telecommunications, Healthcare and Financial Services & Technology industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $20 billion in over 250 companies. For more information, please visit www.gtcr.com.
Founded in 1987, Resonetics is a pioneer in advanced engineering and manufacturing solutions for the medical device industry. Resonetics is a leader in laser processing, centerless grinding, nitinol processing, thin-wall stainless steel and precious metal tubing, photochemical machining, metal fabrication, and fiber optic sensors. With nine Lightspeed Application Development Labs located strategically to serve medical device companies around the world, Resonetics is built on a foundation of quality, speed, and innovation to deliver best-in-class value with a customer-centric approach. The company is ISO 13485:2016 certified with facilities in the United States, Costa Rica, Israel, Switzerland, and Canada. For more information, please visit www.resonetics.com.