Pioneer Surgical Technology is in the process of being sold to RTI Biologics for $130 million, according to an announcement made on Wednesday.
The Florida-based RTI Biologics Inc. has entered into an agreement to buy Pioneer Surgical. RTI is purchasing Pioneer Surgical as a way to expand their implant portfolio into metals and synthetics.
"The combination of RTI and Pioneer is an exciting opportunity for both companies and their employees," said Brian K. Hutchison, RTI president and chief executive officer. "This acquisition is strongly aligned with RTI's long-term strategic plan, accelerating new growth opportunities and gross margin expansion. Pioneer has built a strong distribution network for their implants, which will be beneficial when we launch our map3 cellular allogeneic bone graft later this year."
Pioneer Surgical's president and CEO expects this acquisition to be a positive step for the company as well.
"We believe the combination of Pioneer and RTI will be a catalyst for continued growth," said Daniel Webber, Pioneer's President and CEO. "The combined company will have a broad portfolio of complementary surgical implants benefiting patients, surgeons and hospitals, as well as advancing the positive momentum we have built at Pioneer. Additionally, RTI's culture of innovation is a great fit with that of our own employees."
RTI will pay $130 million in cash to acquire all the outstanding stock of Pioneer as part of the merger agreement. The transaction is expected to close in the third quarter of 2013, pending approval of the SEC.