Altor divests majority stake in Orchid Orthopedic Solutions to Nordic Capital
On January 21, Altor Fund III (“Altor”) announced that it has agreed to divest the majority of its current holding in Orchid Orthopedic Solutions (“Orchid”) to Nordic Capital Fund IX (“Nordic Capital”). Altor will retain a significant minority holding in the company.
Altor has been the majority owner of Orchid since 2011. Headquartered in Holt, Michigan, Orchid is a world leader in the design and manufacture of implants to the global orthopedic market. Orchid’s leading offerings span hip, knee, trauma, extremity and spinal implant products, as well as single-use and multi-use complex instruments used in implant related surgical procedures.
As a strategic partner to the leading global medical device OEMs, Orchid offers solutions in product and procedure design and possesses the full range of manufacturing processes required to produce finished, packaged products. The Company serves a global customer base from its 12 manufacturing sites in the US, UK, Switzerland and China. Orchid innovates continually to provide differentiated processes yielding unique products, while simplifying its customers’ supply chains, delivering outstanding quality and offering end-to-end solutions benefitting from the broadest implants portfolio in the market.
The orthopedic implant market benefits from strong secular growth driven by larger and increasingly active elderly populations, obesity, medical advancements and increased access to surgical orthopedic care. As a leader in the industry, Orchid is ideally positioned to capitalize on this demand growth while helping its customers become more competitive.
“We are proud of what we have achieved together with the management team during these eight years where we have built Orchid into a world leading supplier of design and manufacturing solutions for the rapidly growing global orthopedic implant market. During Altor’s ownership, Orchid has developed into a true global company serving global customers with innovative end-to-end manufacturing solutions. We are excited to see Nordic Capital as the new main owner with Altor continuing the journey as a significant minority shareholder since we have continued strong belief in Orchid’s strong management team, unique position and the attractive long-term industry fundamentals. Together we are fully committed to support Orchid’s management team in realizing the company’s growth strategy” says Claes Ekström, Chairman of Orchid and Senior Advisor at Altor Equity Partners AB.
Orchid’s current management team, led by CEO Jerry Jurkiewicz, will continue to lead the Company, building on its strong track record of both organic and acquisitive growth.
“We are very proud of our achievements during Altor’s tenure as our majority owner. We have transformed Orchid from a US contract manufacturer to the leading global orthopedic implants design and manufacturing partner in the world. We focused on satisfying our customers with a broad array of innovative implants procedure solutions built upon manufacturing sites dedicated to delivering operational excellence. We are humbled by Altor’s renewed commitment to Orchid in partnership with Nordic Capital” says Orchid CEO Jerry Jurkiewicz.
The parties have agreed not to disclose financial details of the transaction, which remains subject to customary regulatory approvals.
Tor Krusell, Head of Communications at Altor
Tel: +46 70 543 87 47
About Orchid Orthopedic Solutions
Orchid is a world leader in orthopedic medical device solutions, providing design and manufacturing services globally. As a strategic partner, Orchid has the capability of providing entire implant procedure and product design services, as well as, complete single source manufacturing. Orchid has the broadest portfolio in the industry, ranging from design and development through finished goods manufacturing and packaging, improving customers’ supply chains and adhering to the highest quality standards in the industry. Orchid specializes in implants, single use instruments and innovative technologies within joint reconstruction, hips, knees, spine, trauma, extremities and dental. For further information, please see www.orchid-ortho.com
Since inception, the family of Altor funds has raised some EUR 5.8 billion in total commitments. The funds have invested in excess of EUR 4.2 billion in more than 40 companies. The investments have been made in medium sized, predominantly Nordic, companies with the aim to create value through growth initiatives and operational improvements. Among current and past investments are ByggMax, Carnegie Investment Bank, Dustin, Dynapac, Helly Hansen, Lindorff and SATS ELIXIA. For more information visit altor.com.