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Monday, January 13, 2020

RTI Surgical sells OEM business to PE shop Montagu

RTI Surgical (NASDAQ:RTIX) has agreed to divest its OEM business to Montagu Private Equity, LLP for $480M in cash and $10M in other consideration. The transaction should close in H1.
Afterward, RTIX will be a pure-play spine business.
On a preliminary basis, spine revenues in Q4 and 2019 were $32M – 33M and $118M – 119M, respectively, while OEM revenues were ~$47M and ~$189M, respectively.
Total revenues in Q4 and 2019 (includes OEM) were $79M – 80M and $307M – 308M, respectively.
It plans to launch 10 new products during each of the next two years.
Management will provide 2020 guidance when the deal closes.

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