USA – The buyout firm EQT AB has reached an agreement to acquire medical device component manufacturer Zeus in a deal valued at US$3.4 billion.
The transaction is expected to close in Q1 2024, subject to regulatory approvals and customary closing conditions.
EQT aims to bolster Zeus through investments in expanded capacity, research and development, and operational excellence, particularly in supporting burgeoning medical fields reliant on minimally invasive technologies.
These investments will uphold the company’s legacy of collaboration with clients’ research and development units, ensuring their position at the forefront of cutting-edge technologies.
EQT also revealed that John Groetelaars, former CEO of Hillrom and EQT Industrial Advisor, will assume the role of Zeus’ Executive Chairman upon the deal’s finalization.
Ethan Waxman, Partner at EQT Private Equity’s Advisory Team, expressed enthusiasm about Zeus’ unique positioning in its served markets due to its unparalleled expertise in material science and processes.
EQT looks forward to collaborating with Zeus, investing in its growth phase, employees, and the communities it serves, while preserving the values and commitment to excellence instilled by Frank Tourville Sr., values shared by EQT.
Steve Peterson, President and CEO of Zeus, expressed excitement about joining the EQT family, acknowledging the momentum gained through global expansion efforts and foreseeing accelerated growth propelled by this acquisition.
John Groetelaars, sharing his enthusiasm, highlighted plans to bolster Zeus’ impressive legacy and outstanding product portfolio, emphasizing strengthened customer partnerships, expanded capacity through investments, operational enhancements, and fostering growth via fresh product innovations.
In the immediate future, efforts are focused on facility expansion, increased staffing, and heightened production in support of clients, while maintaining Zeus’ status as a significant employer in its operational communities.
The transaction is anticipated to conclude in Q1 2024, subject to regulatory approvals and standard closing conditions.
This transaction positions EQT X (target fund size of €20.0 billion and a hard cap of €21.5 billion) to be 25-30 percent invested, factoring in its target fund size and completed or anticipated investments, including public offers, as applicable, and accounting for expected syndication.
Established in 1966, Zeus stands as a trailblazer in designing, developing, and extruding fluoropolymer tubing for medical devices and specific industrial applications.
For over half a century, Zeus has delivered innovative and pivotal components enhancing the efficiency and performance of highly intricate catheters utilized in life-saving, minimally invasive medical procedures, among other applications.
Headquartered in Orangeburg, South Carolina, Zeus operates across eight facilities in the United States and one in Letterkenny, Ireland.
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