Five Orthopaedic acquisitions you may have missed

If 2020 was a challenging year for global mergers and acquisitions with the Covid-19 pandemic impacting dealmakers, the orthopaedic market showed few signs of slowing down in 2021.

After an unpredictable 12 months that saw medical device companies holding onto cash, last year began with a rush with manufacturers and service providers expanding into new geographical areas and diversifying their portfolios. 

As well as pure expansion deals, companies within the spine and orthopaedic industry made strategic decisions based on adding complementary services and technologies.

This included major deals such as Smith+Nephew acquiring Integra LifeSciences’ extremity orthopaedics business for $240m, strengthening their orthopaedic line, and NuVasive’s acquisition of Simplify Medical for more than $150m. 

Our M&A and Investment Manager Suzanna Everard has picked five smaller buy-outs that might have been overlooked in 2021 as companies look to open up new markets and expand their portfolios.

Neo Medical acquires TriOs Medical 

In February Swiss-based spinal fusion device developer Neo Medical acquired TriOs Medical to grow its footprint in Germany and across Europe.

The move leverages Neo Medical’s longstanding collaboration with TriOs Medical as the company’s exclusive German commercial partner, strengthening its position in the German thoracic-lumbar fixation market. 

Since the first product launch in Germany in 2017, Neo technologies have been adopted by over 100 German centres and used in more than 10,000 surgeries, with more than 90 per cent of surgeries performed by recurrent users.

The company’s US operations also got a new president in Jon P. Verbiest, and a new US-focused organisational structure to support the company’s continued growth.

Shalby acquires Implant Assets from Consensus Orthopedics

Indian hospital chain Shalby acquired Implant Assets from US-based Consensus Orthopedics for a consideration of $11.45m in cash in May.

The transaction will see a team of 40-plus Consensus employees joining Shalby, with the acquired assets largely consisting of inventory, manufacturing plant and equipment.

Inventory comprises knee, hip, mobile bearing knee and revision knee systems. Hospitals, surgeons and wholesale distributors (primarily within North America) are Consensus’ main customers for orthopaedic implants and instruments. 

Kinos Medical Merges with restor3d

A supplier of patient-specific 3D-printed implants, restor3d merged with total ankle replacement manufacturer Kinos Medical in May. 

The company has products that are ready for regulatory submission while some, such as its osteotomy wedges and cervical inter body fusion implants, have already received approval from the US Food and Drug Administration (FDA). 

The deal will accelerate restor3d’s entry into the US foot and ankle market.

Tyber Medical to Acquire CatapultMD

The Pennsylvania-based orthopaedic device manufacturer entered into an agreement to acquire CatapultMD in September. 

Since its founding in 2012, Tyber Medical has released more than 50 spine, trauma and extremity systems. Acquiring orthopaedic instrument and implant manufacturer CatapultMD will see the company double its manufacturing space to 100,000 sq ft once complete. 

The deal will also see Tyber Medical’s workforce expand from 120 as a headcount of up to 144. 

Graftys Acquires Biologics4Life

A synthetic bone biomaterials manufacturer, Belgium-based Graftys announced its acquisition of Biologics4Life in November. 

With products already registered in more than 30 countries worldwide, including Europe, Canada, Australia and South America, the acquisition further builds Graftys’ expertise in bone graft and strengthens their cross-functional capabilities in R&D, manufacturing, regulatory affairs and global commercialisation. 

An early-stage company developing a new generation of injectable synthetic bone graft materials, Biologics4Life’s focuses on combination materials including active principles for the treatment of osteoporotic fractures and bone metastases.

The merger will see the two companies form an international group specialising in biomaterials for bone grafts.

Mergers and acquisitions within the spine and orthopaedic market continued despite the challenges of 2020 and the pace of deals seems to have been restored in 2021,” said Suzanna Everard. 

“Our experience shows that the acquirers who enjoy the most successful deals are those with specific, clearly articulated ideas for creating value. 

“At Ortho Consulting Group, our network of start-ups and SMEs within the industry means we are perfectly placed to support companies with their inorganic growth strategy by building a pipeline of potential acquisition targets.

“As sector specialists, we understand the key drivers for acquisitions and support our clients throughout the sale process, highlighting their true value and potential, identifying strategic buyers and securing the best return.