Case Study
Avalign Technologies’ Acquisition of the Assets of Thortex
| Client | Avalign Technologies is a Bannockburn, Illinois-based medtech contract manufacturer selling instruments, cutting tools and cases and trays to mid-range orthopedic OEM customers |
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| Ownership | Avalign is a portfolio company of Washington D.C.-based Arlington Capital Partners |
| Seller | Thortex is a Portland, Oregon-based manufacturer of metal machined orthopedic implants, a proprietary coating process for implants and patented titanium metal injection molding (Ti MIM) manufacturing technology |
| Transaction | Avalign acquired 100% of the assets of Thortex |
| Consideration | Cash plus earn-out |
| Valuation | Undisclosed |
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Situation Review
- KGI was engaged by Avalign to execute an acquisition search assignment focused on orthopedic implants and later expanded to include instrument manufacturers in the U.S. and Europe
- KGI understood and appreciated the value of the proprietary Ti MIM and coating technologies at Thortex
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Transaction Process
- KGI had long established first-hand knowledge of Thortex and its operations developed over a period of six years, having visited the facility numerous times, and a well-established personal relationship with ownership
- Thortex was introduced to Avalign by KGI well before the Owners’ decision to sell; this allowed for quick response by Avalign when the Owners reached decision to sell based on owner’s health
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Outcomes
- The transaction broadened the size and scope of Avalign’s product offerings to its OEM customers
- New manufacturing technology is very hard to acquire and this puts Avalign as one of three industry leaders with Ti MIM at the point of commercialization
- The addition of surface coatings makes Avalign the second major contract manufacturer with such in-house capability