powerbattles
4 years ago
RTI Surgical Holdings, Inc.® Announces Sale of OEM Business and Preliminary Fourth Quarter and Full Year 2019 Revenues
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RTI Surgical (NASDAQ:RTIX)
Intraday Stock Chart
Today : Tuesday 14 January 2020
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RTI Surgical Holdings, Inc. (Nasdaq: RTIX), a global surgical implant company, today announces a definitive agreement for the sale of the Company’s OEM business to Montagu Private Equity LLP (‘Montagu’), a leading European private equity firm, for a total consideration of $490 million. The transaction is targeted to close in the first half of 2020.
Transaction Overview
RTI Surgical Holdings has agreed to sell its OEM business to Montagu, a leading European private equity firm, for $480 million in cash and certain other consideration, totaling $490 million
The RTI Surgical Holdings Board of Directors unanimously approved the transaction
The transaction is subject to approval from RTI Surgical Holdings’ shareholders, the customary regulatory approvals and the satisfaction of customary closing conditions, and is targeted to close in the first half of 2020
Upon closure of the transaction, RTI Surgical Holdings will be a global pure play spine business focused on growth and innovation
After closing, the OEM business will continue under a contractual relationship to support RTI in developing and manufacturing certain products in RTI’s product portfolio
Proceeds from the transaction are currently expected to be used to repay indebtedness and to capitalize RTI Surgical Holdings for continued investment in its global spine portfolio
“The sale of the OEM business to Montagu completes the first phase of our strategic transformation to reduce complexity, drive operational excellence and accelerate the growth of RTI Surgical,” said Camille Farhat, President and CEO, RTI Surgical Holdings. “We are excited about this transaction, not only because of the value that is immediately created, but also because the OEM business is going to an experienced investor who understands the business and the expertise of the people and will support its growth and development.”
Mr. Farhat continued, “Following the transaction, we believe RTI will be a global pure play spine company with tremendous fundamentals and exciting long-term growth prospects. We estimate the spine business will have generated global revenues in the range of $118 million to $119 million with gross margins of approximately 75% in 2019. Immediately, post-transaction, the continuing business is expected to be debt-free and have approximately $175 million to $200 million of cash on the balance sheet to support its growth, which will be further driven by our Novel Therapies and an expected minimum of 10 new product introductions during each of the next two years.”
Olivier Visa, President of the OEM business commented, “We are thrilled about the sale of the OEM business to Montagu. We have built a world-class design, development and manufacturing competency with demonstrated expertise across tissue, biologics and hardware with a tremendous team and a customer base of leading medical technology companies. We are vested in continuing to build customer intimacy in service of our existing and future partners and continuing our legacy of serving more patients and maximizing the gift of donation. We look forward to working with Montagu in driving the growth of the business and deepening the significant expertise and core competencies we have developed to serve more patients.”
Guillaume Jabalot, Director, Montagu, said: “As a strong, resilient business that is well-positioned to capitalize on accelerated growth opportunities, RTI’s OEM business is an excellent fit for Montagu’s investment strategy. We look forward to working with Olivier and the team to support the business in this exciting next chapter of growth, maintaining its ethos of exceptional service and innovation.”
Preliminary Fourth Quarter and Full Year 2019 Results
For the fourth quarter of 2019, the Company expects to report revenues of $79 million to $80 million. In the quarter, OEM segment revenues are expected to be approximately $47 million and global Spine segment revenues are expected in the range of $32 million to $33 million primarily driven by solid progression of the Novel Therapies portfolio, delivering over 20% sequential growth compared to the third quarter 2019.
For the full year of 2019, the Company expects to report revenues of $307 million to $308 million. In the full year 2019, OEM segment revenues are expected to be approximately $189 million and global Spine segment revenues are expected in the range of $118 million to $119 million.
The Company will provide formal 2020 guidance for the global Spine business at the time of the transaction closing.
Piper Sandler acted as the exclusive financial advisor and rendered a fairness opinion to RTI Surgical Holdings, and Sidley Austin and Holland & Knight were RTI Surgical Holdings’ legal advisors on the transaction. Weil, Gotshal & Manges LLP acted as legal advisors to Montagu.
Conference Call
RTI will host a conference call and audio webcast at 8:30 a.m. ET on January 14, 2020. The conference call can be accessed by dialing (877) 383-7419 (U.S.) or (760) 666-3754 (International), using conference ID 3870628. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com/investors. A replay of the conference call will be available on RTI’s website for one month following the call.
About RTI Surgical Holdings, Inc.
RTI Surgical Holdings is a leading global surgical implant company providing surgeons with safe biologic, metal and synthetic implants. Committed to delivering a higher standard, RTI’s implants are used in sports medicine, plastic surgery, spine, orthopedic and trauma procedures and are distributed in over 50 countries. RTI has four manufacturing facilities throughout the U.S. and Europe. RTI is accredited in the U.S. by the American Association of Tissue Banks and is a member of AdvaMed. For more information, please visit www.rtix.com. Connect with us on LinkedIn and Twitter.
About Montagu
Montagu Private Equity is one of Europe’s leading private equity firms and has been investing in businesses for over fifty years. Montagu’s investment strategy is focused on partnership with management in buyouts of high-quality companies operating in stable and growing sectors, providing products and services that their customers would otherwise badly miss. It develops a shared strategic vision with management and then provides the necessary financial, strategic and operational resources to help realize that vision and support growth. The firm currently has assets under management of approximately €4.3 billion. Montagu partners with companies with enterprise values between €200 million and €1 billion and has made over 400 investments over the last fifty years. For additional information on Montagu, please visit www.montagu.com.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which may include statements regarding the impact of operational priorities on costs and their impact on RTI Surgical Holdings’ financial performance, RTI Surgical Holdings’ ability to meet its financial and other commitments, the implementation of RTI Surgical Holdings’ strategic initiatives, RTI Surgical Holdings’ ability to expand the number of patients it is able to serve, the impact of the transition from map3® to ViBone®, our growth strategy in spine, the expected integration of, and potential financial impact from various acquisitions, the success of our new product development and commercialization efforts, anticipated financial results, growth rates, future operational improvements, fiscal 2019 guidance and underlying assumptions, shareholder and regulatory approvals and the completion of the transaction. In particular, comments about RTI Surgical Holdings’ fundamentals and long-term growth prospects of RTI Surgical Holdings’ Spine business are forward-looking statements, as are expectations concerning fourth quarter 2019 revenues and the expected performance of Novel Therapies. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management's beliefs and certain assumptions made by our management. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are not guarantees of future performance and are based on certain assumptions including RTI Surgical Holdings’ ability to effectively manage expenses and accomplish its goals and strategies, the quality of the new product offerings from RTI Surgical Holdings, general economic conditions, as well as those within RTI Surgical Holdings’ industry, RTI Surgical Holdings’ ability to integrate acquisitions into existing operations, and numerous other factors and risks identified in the Company’s Form 10-K for the fiscal year ended December 31, 2018 and other filings with the Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Important factors that could cause actual results to differ materially from the anticipated results reflected in these forward-looking statements include risks and uncertainties relating to the following: (i) the risk that RTI Surgical Holdings may be unable to obtain shareholder approval for the proposed transaction or that RTI Surgical Holdings or Montagu may be unable to obtain regulatory approvals required for the proposed transaction, or required regulatory approvals may delay the proposed transaction; (ii) the risk that a condition to the closing of the proposed transaction may not be satisfied; (iii) the risk that the occurrence of an event that could give rise to termination of the definitive agreement; (iv) the risk that shareholder litigation in connection with the proposed transaction may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability; (v) the timing to consummate the proposed transaction; (vi) the effect of the announcement or disruption from the proposed transaction making it more difficult to retain and hire key personnel and maintain relationships with customers, suppliers and other third parties; (vii) the diversion of management time and attention on the proposed transaction; (viii) general worldwide economic conditions and related uncertainties; (ix) the effect and timing of changes in laws or in governmental regulations; and (x) other risks described in our public filings with the SEC. Additional risks and uncertainties will be discussed in the proxy statement and other materials that RTI Surgical Holdings will file with the SEC in connection with the proposed transaction. There can be no assurance that the proposed transaction will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the proposed transaction will be realized. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. Each forward-looking statement in this communication speaks only as of the date of the particular statement. Copies of the Company's SEC filings may be obtained by contacting the Company or the SEC or by visiting RTI's website at www.rtix.com or the SEC's website at www.sec.gov. We undertake no obligation to update these forward-looking statements except as may be required by law.
Important Additional Information and Where to Find It
The proposed transaction will be submitted to the shareholders of RTI Surgical Holdings for their consideration. In connection with the proposed transaction, RTI Surgical Holdings will file a proxy statement and other materials with the SEC. This communication is not a substitute for the proxy statement or any other document that RTI Surgical Holdings may send to its shareholders in connection with the proposed transaction.
RTI SURGICAL HOLDINGS SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT FOR THE PROPOSED TRANSACTION WHEN IT IS FILED, AND ANY AMENDMENT OR SUPPLEMENT THERETO THAT MAY BE FILED, WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT RTI SURGICAL HOLDINGS AND THE PROPOSED TRANSACTION. All such documents, when filed, are available free of charge at the SEC’s website, www.sec.gov, from the Company at its website, www.rtix.com, or by contacting the Company’s Investor Relations at (847) 530-0249.
Participants in Solicitation
RTI Surgical Holdings and its respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information concerning RTI Surgical Holdings’ participants is set forth in the proxy statement, filed March 25, 2019, for the Company’s 2019 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of such participants in the solicitation of proxies in respect of the proposed transaction will be included in the proxy statement and other relevant materials to be filed with the SEC when they become available.
Media and Investor Contact
Molly Poarch
mpoarch@rtix.com
+1 224 287 2661
Golden Cross
5 years ago
RTI Surgical® Announces Commercial Launch of the CervAlign® Anterior Cervical Plate System
Date : 09/24/2019 @ 7:05AM
Source : GlobeNewswire Inc.
Stock : RTI Surgical Holdings Inc (RTIX)
Quote : 3.1 0.0 (0.00%) @ 4:00AM
RTI Surgical® Announces Commercial Launch of the CervAlign® Anterior Cervical Plate System
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RTI Surgical (NASDAQ:RTIX)
Intraday Stock Chart
Today : Tuesday 24 September 2019
Click Here for more RTI Surgical Charts.
RTI Surgical Holdings, Inc. (Nasdaq: RTIX), a global surgical implant company, today announced the full commercial launch of the CervAlign® Anterior Cervical Plate (ACP) System to add to the growth of its Established Therapies spine portfolio.
The CervAlign ACP System is designed to promote cervical fusion by providing temporary resistance to flexion, extension, lateral bending and axial rotation with strength and stiffness in the cervical spine (C2-C7). The system includes implants of various plate and screw sizes to accommodate varying patient anatomies. It also helps reduce complexity for the surgeon customer with an integrated cover-style locking mechanism that adds zero profile, streamlined instrumentation with the same driver for screws, pins, locking and revisions, and low-profile plates ranging from one to five levels, each with large graft windows for intraoperative visibility. Additionally, using the Fortilink®-C Interbody Fusion (IBF) System with TETRAfuse® 3D Technology and ViBone® Viable Bone Matrix with the CervAlign ACP provides surgeons a complete anterior cervical discectomy and fusion (ACDF) solution.
“The locking mechanism on the CervAlign ACP System is easily visible and engaged, and there is no guesswork as to whether it is completely locked,” said Franco E. Vigna, MD, MPH, FACOS of reVive Spine Center in Buffalo, New York. “Additionally, the amount of screw angulation allows for use of a shorter plate. Combined with the large graft windows and visibility of the plate, it allows surgeons to easily instrument the hard-to-access levels such as C3.”
The CervAlign ACP System is intended for anterior cervical fixation (C2-C7) for the following conditions: degenerative disc disease (DDD) defined as neck pain of discogenic origin with degeneration of the disc confirmed by history and radiographic studies, spondylolisthesis, trauma (e.g., fracture or dislocation), spinal stenosis, deformities or curvatures (e.g., scoliosis, kyphosis, and/or lordosis), tumor, pseudarthrosis and failed previous fusion.
“After a successful Limited Market Release, we are excited to commercially launch the CervAlign ACP system to offer a plate with a cover-style locking mechanism and streamlined instrumentation,” said Camille Farhat, President and CEO. “This is a great example of how we plan to use home-grown innovation to accelerate our spine business. CervAlign ACP adds another option for surgeons in our current Established Therapies portfolio, which we have recently reinvigorated through our R&D efforts across hardware, interbodies and biologics. As we further accelerate growth in spine, we will be able to meet the demands of more surgeons and treat more patients.”
About RTI Surgical Holdings, Inc.
RTI Surgical?is a leading global surgical implant company providing surgeons with safe biologic, metal and synthetic implants. Committed to delivering a higher standard, RTI’s implants are used in spine, sports medicine, general surgery, orthopedic and trauma procedures and are distributed in nearly 50 countries. RTI has four manufacturing facilities throughout the U.S. and Europe. RTI is accredited in the U.S. by the American Association of Tissue Banks and is a member of AdvaMed. For more information, visit www.rtix.com. Connect with us on LinkedIn and Twitter.
Molly Poarch
Investor Contact
mpoarch@rtix.com
+1 224 287 2661
Steven Cohen
Media Contact
scohen@rtix.com
+1 847 648 0861
surf1944
12 years ago
RTI Biologics, Inc. (RTIX)
Sector Healthcare
Industry Medical Appliances & Equipment
Market Cap $213.50M
Beta 1.49
RTIX stock chart
Key Metrics
Debt/Equity Ratio 0.01
Long Term Debt/Equity Ratio 0.01
1-Year Projected Earnings Per Share Growth Rate 46.67%
Short Interest 3.91%
RTI Biologics, Inc., together with its subsidiaries, produces orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The company processes donated human musculoskeletal and other tissues, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera, and dermal tissues, as well as bovine animal tissues to produce allograft and xenograft implants by utilizing its proprietary BIOCLEANSE and TUTOPLAST sterilization processes. It processes and distributes human and bovine animal tissues for use in the fields of sports medicine, spine, dental, surgical specialties, bone graft substitutes, and general orthopedic. RTI Biologics, Inc. markets its products through its direct distribution force, as well as through a network of independent distributors to hospitals and surgeons in the United States and 30 countries internationally. The company was formerly known as Regeneration Technologies, Inc. and changed its name to RTI Biologics, Inc. as a result of its merger with Tutogen Medical, Inc. in February 2008. RTI Biologics, Inc. was founded in 1997 and is headquartered in Alachua, Florida.
http://seekingalpha.com/article/824921-3-high-growth-low-debt-healthcare-microcaps?source=yahoo
surf1944
12 years ago
RTI Biologics Launches AllograftInfo.com Educational Website
Informational Portal Educates Patients, Public About Allograft Tissue
Business WirePress Release: RTI Biologics Inc. – Tue, Jan 10, 2012 3:30 PM EST
ALACHUA, Fla.--(BUSINESS WIRE)-- RTI Biologics Inc. (RTI) (Nasdaq: RTIX - News), a leading provider of orthopedic and other biologic implants, has launched an informational website to educate patients and the general public about allograft tissue. AllograftInfo.com explores the use of allograft, or human donated tissue, in surgery, as well as provides links to relevant research and articles. The website also addresses several frequently asked questions and provides suggestions on what to ask your surgeon when considering allograft.
“AllograftInfo.com is a website we created based on surgeon feedback to provide patients a convenient and easy-to-understand portal for self-education on allograft tissue," said Brian K. Hutchison, president and chief executive officer. “RTI believes in the life-changing benefits of allograft implants, and we hope this website helps the public and potential patients better understand allograft tissue as an available option in a variety of surgeries.”
An allograft is tissue surgically transplanted from one person to another. Most allograft tissue is recovered surgically after death; the donor must have consented to the donation before death or the donor’s family must consent after death. Allografts have been used successfully for more than 150 years, and approximately one million allografts are transplanted each year in the United States in procedures that include ACL repair, joint reconstruction in the knee and ankle, meniscal replacement, reconstruction due to cancer or trauma, ridge augmentation in dental procedures, shoulder repair, spinal fusion and urological procedures.
Allografts are used as an alternative to synthetic and metal implants. However, unlike synthetic or metal implants, allografts are natural and biocompatible scaffolds, allowing the recipient’s body to remodel it into his or her own tissue over time. Using allograft tissue rather than an autograft – or tissue from one’s own body – eliminates a second surgical site, allowing the recipient to avoid additional pain, risk and a possible longer hospital stay.
RTI honors the gift of tissue donation by treating the tissue with respect, by finding new ways to use the tissue to help patients and by helping as many patients as possible from each donation.
About RTI Biologics
RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.
RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.
RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.
surf1944
13 years ago
RTI Biologics Has Great Growth Potential
While screening on Barchart for small cap stocks having great price momentum I came across RTI Biologics (RTIX), an undiscovered stock that is beginning to be put on analysts' watch lists. The bio-medical sector is starting to move and the product line of this stock is wanted and necessary. Just look at the 11 new highs and 14.24% price appreciation this stock received even in a soft market.
RTI Biologics, Inc. and its subsidiaries produce orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues and improves surgical outcomes. The company processes human musculoskeletal and other tissues, including bone, cartilage, tendon, ligament, fascia lata, pericardium and sclera and dermal tissues into allografts, as well as bovine animal tissues into xenografts for distribution to hospitals and surgeons. It processes and distributes human and bovine animal tissues for spine, sports medicine, dental, surgical specialties, bone graft substitutes and general orthopedic markets in the United States and internationally. The company was founded in 1997 and is headquartered in Alachua, Florida. (Yahoo Finance profile)
Barchart technical indicators:
96% Barchart technical buy signals.
Trend Spotter buy signal.
Above its 20, 50 and 100 day moving averages.
11 new highs and up 14.24% in the last month.
Relative Strength Index 60.27% and rising.
Barchart computes a support level at 3.24.
Traded recently at 3.43 which is above its 50 day moving average of 3.05.
Fundamental factors to consider:
Wall Street analysts are beginning to follow this stock but as yet haven't published any buy signals.
Earnings are projected to increase by 30.00% this year, another 30.80% next year and continue for the next 5 years at 26.95% annually.
General investor sentiment:
Readers on Motley Fool are starting to put this stock on their watch lists and the 229 readers who have expressed an opinion voted 95% that the stock will beat the market.
The more experienced All Stars are more positive with a 97% vote for the same result.
Summary: RTI Biologics is in that sweet spot I like for speculative growth stocks. It has press and is being followed by major stock information sites like Value Line and Motley Fool and has drawn the attention of Wall Street analyst but as yet has not been added to any of their model portfolios. I couldn't pass up these aggressive double digit earnings projects and have added it to both my own account and the accounts of my managed money portfolios.
I think the cultured bone and tissue industry will be a big medical growth area and this company has proven products. Because of its low price and high P/E ration this stock should be acquired only for speculative portfolios but deserves a place on the watch lists of all growth oriented investors.
Disclosure: I am long RTIX. I own the stock personally and it is a position in my clients' managed money portfolios.
when you posted break, I guess you meant break down
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