Case Study
Onyx Medical’s Sale to Elos Medtech
| Client | Onyx Medical Corp. is a Memphis, Tennessee-based contract manufacturer of trauma and extremity products to top orthopedic companies worldwide |
|---|---|
| Ownership | Family-owned |
| Buyer | Elos Medtech is a Sweden-based developer and manufacturer of high precision medtech products and components including dental and orthopedic implants and instruments |
| Transaction | Elos Medtech acquired 100% of the membership interests of Onyx |
| Consideration | Cash plus earn-out |
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Situation Review
- KGI was engaged by Onyx to conduct a negotiated sale process.
- he two active shareholders desired a partner who could provide capital to fuel business growth beyond the limits of organic growth or through marginal debt and equity infusions.
- The two inactive shareholders were at retirement age and wanted to obtain liquidity from their investment.
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Transaction Process
- KGI prepared a Confidential Information Memorandum and marketed selectively to certain family offices and strategic acquirers.
- A number of offers were received followed by management meetings and a fully negotiated LOI.
- The Shareholders closed a deal with the buyer who offered the best combination of economic, cultural and strategic fits.
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Outcome
- The Sellers active in the business will remain in place and assume additional duties consistent with the global footprint Elos
- Deal negotiation and due diligence allowed Sellers and Elos to establish a rapport and mutual respect leading to the closing of a deal which had seemingly insurmountable issues at points during the negotiation
- Onyx will operate as a business unit within the Elos group and serve as a platform for expansion within the U.S.