Altor Fund III ("Altor") has signed an agreement to acquire Orchid Orthopedic Solutions ("Orchid") from Churchill Equity ("Churchill"). Orchid is a world-wide leading supplier of design and manufacturing services of implants and instruments for the orthopedic and dental markets.
Orchid is a world-wide leading supplier of design and manufacturing services of implants and instruments for the orthopedic and dental markets, and has long term relationships with most of the leading medical device OEMs in the industry.
Orchid provides innovative design and development, implant and instrument manufacturing, advanced machining, plastics technology, implant coatings and surface treatment, and packaging services.
Working in partnership with medical device OEMs around the world, Orchid is able to leverage the lean principles of single-piece flow, waste minimization and process simplification. By tying its value stream to its customers', Orchid offers the best total supply chain value and the ability to bring world-class technology products to market rapidly.
"We are delighted to have Altor as a new owner. Altor shares our view on the future development of the company and have the resources, experience, and time horizon required. Orchid will continue with its customer-centric and partnership based approach, taking out cost and lead time from the supply chain which will enable us to continue to outgrow our competitors and earn new business from our customers." Mike Miller, CEO of Orchid
"With an increasingly active and aging population in the western markets and increasing public and private health care spend in the developing markets, there is a fundamentally solid long term demand growth outlook for orthopedic and dental implants. With a leading position in a fragmented supplier industry, Orchid is very well placed to participate in that growth." Claes Ekström, Partner at Altor Equity Partners AB
"We are highly impressed with Orchid’s performance and its management team, and we are excited about the opportunity to develop and support the company in its continued growth, together with its management, organically as well as through an international expansion." Hans Stråberg, Board Member, former CEO Electrolux
"We are very pleased to have found a dynamic, deeply committed and resourceful new owner for Orchid. Altor, with its international experience, significant resources, and ability to take a longer term investment perspective, is the perfect match for Orchid. Churchill has actively supported the development of Orchid into its current position, and is proud to hand over a company with a leading industry position and a bright future". Sameer Vijayakar, Partner at Churchill Equity
Merchant Banking, Skandinaviska Enskilda Banken AB (publ) ("SEB") is the sole mandated lead arranger and book runner of the Senior Bank Facilities in relation to the acquisition. Proventus Capital Partners ("Proventus") is sole arranger of the Mezzanine Facility.
For inquiries please contact:
Altor: Claes Ekström, Partner, Altor Equity Partners AB, +46 8 678 9100
Churchill: Sameer Vijayakar, Partner, Churchill Equity, +1 612 673 6624
Orchid: Mike Miller, CEO, Orchid, +1 517 694 2300
Proventus: Daniel Sachs, CEO, Proventus AB, +46 8 723 31 83
SEB: Jan Hebeler, Acquisition Finance, Skandinaviska Enskilda Banken AB (publ), +46 8 763 8519
The Altor Fund III (Altor) is a private equity fund with committed capital of 2 billion EUR. Altor is advised by Altor Equity Partners. Altor’s investors include, among others, leading US university endowments and leading European pension and insurance institutions. Altor invests in companies with a focus on value creation through growth initiatives, strategic development and operational improvements. Altor has a long term investment horizon with mandate to keep investments for more than ten years. The Altor Funds’ portfolio currently includes 25 companies with combined revenues of ca 12 billion USD and some 30,000 employees. Current and previous investments within the health care sector include Sonion, Ferrosan, and PaloDEx. For more information, please visit www.altor.com
Churchill Equity provides equity investment capital for a wide variety of middle market businesses, and has successfully invested over 558 million USD in a diverse portfolio of over 30 companies throughout the U.S. and Canada. Equity capital is primarily provided for ownership transitions including recapitalizations, acquisitions, and buyouts.