Stryker Corporation Announces Successful Acquisition of Orthovita, Inc.
16 Mayo 2011 - 9:34AM
Marketwired
Orthovita, Inc. (NASDAQ: VITA), a spine and orthopedic biosurgery
company, announced today that it has agreed to be acquired by
Stryker Corporation for $3.85/share in cash in a transaction that
results in the largest single upfront payment for an orthobiologics
company. The purchase price represents a 58% and 67% premium to the
30 day and 60 day volume weighted average prices, for a total value
transaction value of approximately $318 million.
In July 2007, Essex Woodlands Health Ventures Fund VII, LP
(Essex Woodlands), managed a multi-faceted deal, which was
spearheaded by Partner Scott Barry. Essex Woodlands proactively
contacted the company about a transaction that would address a
number of issues hindering the company's growth and development.
Essex Woodlands led an equity financing of $32.5M to remove the
company's capital overhang and became the largest shareholder of
the company at the time. In addition, Essex Woodlands played a key
role in negotiating the repurchase of an ongoing revenue interest
obligation and in securing a $45M debt facility used to repurchase
the revenue interest obligation. Essex Woodlands also recruited two
highly experienced senior executives in Bill Tidmore, former
president and chairman of Depuy, and Paul Thomas, former CEO of
LifeCell Corporation, to the Board of Directors. During the 3 ½
years of Essex Woodlands' investment, Orthovita became the leading
independent orthobiologic company with its revenues growing from
$58M to $94.7M and the company turned EBITDA and cash flow
positive.
Antony Koblish, Orthovita President and CEO stated, "With the
innovative financing initiatives which assisted our restructuring
and recapitalization efforts exhibited by Essex Woodlands in
general, and Scott Barry in particular, we aggressively and
successfully pursued this transaction. Scott continued to
significantly contribute to the company with his strong leadership
and commitment to the Company, helping us work towards this
successful outcome."
Scott Barry commented, "At Orthovita, Inc., the team was
committed to maximizing the value of Orthovita's orthobiologic and
surgery platforms. With this acquisition by Stryker Corporation,
Orthovita will have in place an unprecedented level of resources
that in combination with Stryker's industry-leading sales and
marketing team will allow for maximizing the potential of their
products and existing pipeline."
The acquisition of Orthovita, Inc. marks the third announced
exit for Essex Woodlands within the past 30 days. The first exit
was announced on April 18, 2011 for Prism Pharmaceuticals, an Essex
Woodlands Health Ventures Fund VI, LP investment, which merged with
Baxter International for $338M. Prism, which is owned 55% by Essex
Woodlands and was formed in 2004, develops drugs for cardiovascular
conditions. A second exit was announced by Essex Woodlands Health
Ventures Fund VII, LP on April 21, 2011 by Healthcare Brands
International (HBI). HBI, which develops OTC products, sold its
Swedish subsidiary, Antula Healthcare, to Meda AB for SEK 1.8B
(US$288M).
Stryker Corporation's acquisition of Orthovita, Inc. marks the
fourth growth equity exit and sixth overall exit of Essex
Woodlands' portfolio over the past 15 months. Prior growth equity
exits include BioForm, which was acquired by Merz Pharma Group on
February 16th, 2010 for an enterprise value of $300M, followed by
ATS Medical, which was acquired by Medtronic on April 29th, 2010
for an enterprise value of $370M. Growth equity investments in
China also exhibited strong results: China Cord Blood Corporation
went public November 30th, 2009 and MicroPort Scientific
Corporation completed its IPO on the Hong Kong Stock Exchange,
raising $200M on September 24, 2010.
About Essex Woodlands With $2.5 billion under management, Essex
Woodlands is one of the largest and oldest venture capital and
private equity firms pursuing investments in pharmaceuticals,
biotechnology, medical devices, health care services, and health
information technology. Since its founding in 1985, Essex Woodlands
has maintained its singular commitment to the healthcare industry
and has been involved in the founding, investing, and/or management
of over 100 healthcare companies ranging across all sectors, stages
and geography. The team is comprised of 25 senior investment
professionals with offices in Palo Alto, Houston, New York and
London.
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