(Reuters) — Tecomet Inc, a privately held U.S. contract manufacturer of medical devices and surgical instruments, is exploring a sale that could value it at more than $1 billion, including debt, according to people familiar with the matter.
The sale process comes as contractors have benefited in recent years from the healthcare industry’s drive to cut costs, hasten research and development times and expand operations around the world.
Genstar Capital, the private equity firm that owns Tecomet, has hired investment bank William Blair & Company, LLC to run an auction for the company, the people said this week, asking not to be identified because the sale process is confidential.
Genstar, Tecomet and William Blair declined to comment.
Based in Wilmington, Massachusetts, Tecomet specializes in manufacturing medical implants ranging from artificial hips and knees to spinal discs. It also makes industrial products such as radar and propulsion systems.
Founded in 1963, Tecomet was acquired in 2001 by Viasys Healthcare and sold to buyout firm Charlesbank Capital Partners in 2007. It was acquired by Genstar Capital in 2013 for an undisclosed amount.
Tecomet has grown significantly in recent years through a series of acquisitions. It has annual earnings before interest, taxes, deprecation and amortization of more than $100 million, according to the sources.
In 2014, Tecomet purchased the contract manufacturing business of Symmetry Medical for $450 million. The remainder of Symmetry was spun off as publicly traded Symmetry Surgical, which is now owned by buyout firm Roundtable Partners.
Other significant acquisitions of the company include Teleflex Medical’s orthopedics business in 2012 and a 2014 buyout of 3D Medical Manufacturing.