A Swedish private equity firm has acquired Orangeburg-based medical device manufacturer Zeus.
The EQT X fund, based in Stockholm, Sweden, and Zeus have entered into an agreement for EQT to acquire Zeus from the Tourville family, according to an EQT news release.
Yahoo Finance reported the deal is valued at about $3.4 billion.
Founded in 1966, Zeus is a pioneer in the design, development, and extrusion of fluoropolymer tubing for medical devices and select industrial applications, according to the release. John Groetelaars, former CEO of Hillrom and EQT Industrial adviser, will serve as Zeus’ executive chairman upon closing of the transaction, the release stated.
For more than 50 years, Zeus has delivered innovative and mission-critical components that improve the efficacy and performance of highly complex catheters, which are used in life saving, minimally invasive medical procedures, among other applications, the release stated. The company is headquartered in Orangeburg, with eight facilities across the United States and one in Letterkenny, Ireland.
Zeus employs approximately 2,400 people globally and serves over 300 customers in more than 100 countries, including leading medical device manufacturers, contract device manufacturing organizations, academic institutions, and industrial customers across aerospace, semiconductors, and automotive, among other industries, according to the release.
How the acquisition might affect Zeus employees in South Carolina was not disclosed.
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“We are excited to join the EQT family. Zeus has gained significant momentum in recent years due to a strategic global expansion plan,” Steve Peterson, president and CEO of Zeus, said in the release. “This acquisition accelerates that momentum and growth by supporting future expansion, new product innovation, process improvements, technological transformation, and enhanced capabilities.”
EQT will support Zeus with investments in additional capacity, R&D, and operational excellence, to support the rapidly growing medical fields that leverage minimally invasive technologies, the release stated. These investments will enable the company to continue its legacy and reputation of partnering with its clients’ research and development groups to remain at the forefront of next generation technologies.
“EQT has tracked the medical device component industry closely for several years, and we believe Zeus is uniquely positioned within the end markets it serves due to its unmatched material science and process expertise,” Ethan Waxman, partner within EQT Private Equity’s Advisory Team, said in the release. “We are excited to partner with the Company and invest in its next phase of growth, its employees, and the communities it serves, while maintaining Frank Tourville Sr.’s values and commitment to excellence, which are shared by EQT.”
The transaction is expected to close in Q1 2024, subject to regulatory approvals and customary closing conditions.
Piper Sandler Companies acted as financial advisor to EQT Private Equity and Simpson Thacher & Bartlett LLP provided legal counsel. Goldman Sachs & Co. LLC acted as financial advisor to Zeus and Freshfields Bruckhaus Deringer LLP provided legal counsel. The Private Credit business within Goldman Sachs Asset Management will serve as the Administrative Agent and lead lender in the Senior Secured financing to support the transaction.
With this transaction, EQT X (target fund size of EUR 20.0 billion and a hard cap of EUR 21.5 billion) is expected to be 25-30% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on its target fund size, the release stated.g