RTI Surgical on Jan. 13 signed a definitive agreement to sell its OEM business to Montagu Private Equity in a $490 million deal.
1. Montagu will acquire the OEM business, which develops biologic, metal and synthetic implants, for $480 million in cash and $10 million in certain other consideration.
2. RTI Surgical plans to use the capital to become debt free and bolster its spine portfolio with up to $200 million in cash to help achieve double-digit growth.
3. The deal was unanimously approved by the company's board of directors.
4. Pending regulatory and shareholder approval, the transaction is set to close in the first half of 2020.