Case Study
Precision Edge Surgical Products Company Acquires Eva-Lution
| Client | Precision Edge is a contract manufacturer of surgical components, cutting tools and accessories, primarily for the Orthopedic industry. Prior to its acquisition of Eva-Lution, Precision Edge owned 75,000 square feet of manufacturing space in two facilities located northern Michigan. Precision Edge is a member of Colson Medical, LLC which is majority owned by Marmon Holdings, Inc., a Berkshire Hathaway company. |
|---|---|
| Seller | Eva-Lution is an Indiana-based company specializing in medical instrument manufacturing since 2015. Eva-Lution was a privately-held with over 60,000 square feet of manufacturing space and strong capabilities in the grinding of Orthopedic instruments. |
| Consideration | Cash at close. |
| Valuation | Undisclosed |
-
Situation Review
- Precision Edge was operating at capacity and losing business due to the inability to expand its existing facilities.
- Precision Edge engaged Kinsella Group as its exclusive buy-side advisor to identify and acquire a synergistic company.
- The acceptable acquisition target specifications were tight – must have Orthopedic grinding capabilities, be based in the Midwest and within the specified size range.
-
Transaction Process
- Kinsella Group, due to its strong network in the Orthopedic Contract Manufacturing space, identified Eva-Lution as a good strategic fit for its client.
- Kinsella Group then reached out to the CEO and owner of Eva-Lution. Because the owner was not already in a sale process, Kinsella Group presented the advantages of selling his business to Precision Edge.
- Kinsella Group assisted Colson Medical, Precision Edge and their team of advisors to conduct thorough due diligence on Eva-Lution.
- Kinsella Group advised Precision Edge on a variety of deal structure options, and after finalizing the desired structure, helped negotiate the LOI which provided the foundation for the successful transaction.
-
Outcome
- Kinsella Group helped Precision Edge quickly and significantly expand its capacity at a time when Precision Edge was in urgent need of new space, machines and people.
- Kinsella Group helped Precision Edge expand its capabilities in acquiring the grinding expertise Precision Edge was seeking.
- The successful conclusion of this transaction led to a follow-on engagement with the client.