GTCR Announces Strategic Investment in Resonetics by Carlyle

Rhea-AI Summary

GTCR has announced a strategic investment in Resonetics, with Carlyle acquiring a minority equity stake, valuing the company at approximately $2.25 billion. This partnership aims to enhance Resonetics' capabilities in the Medical Tech sector, where it specializes in micro-manufacturing for interventional and minimally-invasive medical devices. GTCR's initial investment in Resonetics supports its substantial growth, including eight strategic acquisitions since 2017. The collaboration signals confidence in Resonetics' continued expansion and innovation in high-growth markets.

Positive

• Carlyle's investment values Resonetics at approximately $2.25 billion.
• Partnership with Carlyle is expected to enhance Resonetics' capabilities in the MedTech sector.
• Resonetics has experienced significant growth, including eight acquisitions since GTCR's initial investment.

Negative

• None.

CHICAGO and NASHUA, N.H., Dec. 3, 2021 /PRNewswire/ -- GTCR, a leading private equity firm, announced today that its portfolio company, Resonetics (or the "Company") has sold a minority equity stake to funds affiliated with global investment firm Carlyle (NASDAQ: CG), valuing the Company at approximately $2.25 billion. Carlyle will join GTCR as a meaningful shareholder in Resonetics as a result of the transaction.

Founded in 1987 and headquartered in Nashua, NH, Resonetics is a leader in micro-manufacturing for medical devices, targeting fast-growing interventional and minimally-invasive applications across the MedTech industry. The Company is focused on fabricating highly technical componentry for complex medical device applications, serving end-markets that are experiencing robust growth as clinicians shift away from higher-risk, invasive procedures, towards more interventional approaches. Resonetics has established itself as a mission-critical supplier enabling innovations in several high growth MedTech end-markets including diabetes, neurovascular, ophthalmology, interventional cardiology, and structural heart, among others.

GTCR made its initial investment in Resonetics in partnership with MedTech industry executive Robert "Chip" Hance. Consistent with its Leaders Strategy™ approach, GTCR initially partnered with Mr. Hance to form Regatta Medical in April 2017 to pursue opportunities in the medical device sector. Since GTCR's investment, GTCR and Mr. Hance have partnered with the Resonetics management team, led by CEO Tom Burns, to significantly grow the Company's revenue and EBITDA through investments in strong organic growth and strategic add-on acquisitions.

"We've appreciated the opportunity to invest in Resonetics, supporting its organic growth initiatives and its eight add-on acquisitions, including the recent acquisitions of FISO Technologies and Hudson Medical Innovations, during our ownership," said Sean Cunningham, Managing Director at GTCR. "We are thrilled to continue our partnership with Chip Hance, Tom Burns, and the entire Resonetics management team as they look to build on their success in the coming years," he added.

"Our business has advanced significantly over the past four years, as we've expanded our production capacity, grown our facility footprint and built greater scale," said Tom Burns, CEO, Resonetics. "We have enjoyed the outstanding partnership with GTCR as we've built Resonetics and are excited to be partnering with GTCR and Carlyle in this next chapter as we continue to grow our business and enhance our product capabilities to better serve our customers."

"We have been extraordinarily impressed with the growth and development of Resonetics over the last several years and are looking forward to our ongoing partnership with the Company," added GTCR Co-CEO and Managing Director Dean Mihas. "I want to thank Chip Hance and Tom Burns for their outstanding leadership and look forward to our next chapter with the entire Resonetics team and our partners at Carlyle."

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.

About GTCR
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.

About 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.

About Resonetics
Founded in 1987, Resonetics is a pioneer in advanced engineering and manufacturing solutions for the life sciences 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.

Media

For GTCR:
Kellie Kennedy
312.933.4903
kelliek@theharbingergroup.com

For Carlyle:
Brittany Berliner
212.813.4839
brittany.berliner@carlyle.com

For Resonetics:
Justin Miller
805.807.1481
jmiller@resonetics.com

 

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SOURCE GTCR

FAQ

What is the significance of Carlyle's investment in Resonetics?

Carlyle's investment, valuing Resonetics at $2.25 billion, is expected to enhance the company's capabilities and innovation in the MedTech sector.

How much did Carlyle invest in Resonetics?

Carlyle's investment in Resonetics values the company at approximately $2.25 billion.

What market does Resonetics serve?

Resonetics focuses on micro-manufacturing for interventional and minimally-invasive medical devices across various high-growth markets.

How many acquisitions has Resonetics made since GTCR's investment?

Since GTCR's investment, Resonetics has made eight strategic acquisitions.

When did GTCR initially invest in Resonetics?

GTCR made its initial investment in Resonetics in April 2017.