The EQT X fund (“EQT”) and Zeus Firm, Inc., as we speak collectively introduced that they’ve entered into an settlement for EQT to accumulate Zeus Firm Inc (“Zeus” or the “Firm”) from the Tourville household. Based in 1966, Zeus is a pioneer within the design, improvement, and extrusion of fluoropolymer tubing for medical gadgets and choose industrial functions. EQT additionally introduced that John Groetelaars, former CEO of Hillrom and EQT Industrial Advisor, will function Zeus’ Government Chairman upon closing of the transaction.
For greater than 50 years, Zeus has delivered revolutionary and mission-critical parts that enhance the efficacy and efficiency of extremely complicated catheters, that are utilized in life saving, minimally invasive medical procedures, amongst different functions. The Firm is headquartered in Orangeburg, South Carolina, with eight amenities throughout the USA and one in Letterkenny, Eire. Zeus employs roughly 2,400 folks globally and serves over 300 prospects in additional than 100 international locations, together with main medical machine producers, contract machine manufacturing organizations, tutorial establishments, and industrial prospects throughout aerospace, semiconductors, and automotive, amongst different industries.
Zeus’ parts allow the supply of minimally invasive interventional procedures, which drive considerably higher well being outcomes than conventional open surgical procedures, together with sooner affected person restoration and lowered ache, at decrease value. Zeus has skilled substantial progress as a number one innovator in polymer-based options. As populations age and persistent situations turn out to be extra prevalent, growing demand for precision, high-performance catheters to help therapeutic areas together with structural coronary heart, peripheral and neurovascular interventions, is anticipated to proceed fueling Zeus’ progress.
EQT will help Zeus with investments in extra capability, R&D, and operational excellence, to help the quickly rising medical fields that leverage minimally invasive applied sciences. These investments will allow the Firm to proceed its legacy and popularity of partnering with its purchasers’ analysis and improvement teams to stay on the forefront of subsequent technology applied sciences.
Ethan Waxman, Accomplice inside EQT Personal Fairness’s Advisory Crew, mentioned: “EQT has tracked the medical machine part trade carefully for a number of years, and we imagine Zeus is uniquely positioned throughout the finish markets it serves as a consequence of its unmatched materials science and course of experience. We’re excited to associate with the Firm and put money into its subsequent part of progress, its workers, and the communities it serves, whereas sustaining Frank Tourville Sr.’s values and dedication to excellence, that are shared by EQT.”
Steve Peterson, President and CEO of Zeus, added: “We’re excited to hitch the EQT household. Zeus has gained vital momentum lately as a consequence of a strategic international enlargement plan. This acquisition accelerates that momentum and progress by supporting future enlargement, new product innovation, course of enhancements, technological transformation, and enhanced capabilities.”
John Groetelaars mentioned: “I’m thrilled to embark on this journey with Zeus and EQT to construct upon the Firm’s spectacular legacy and best-in-class, differentiated product portfolio. We’re dedicated to strengthening the partnerships with the shoppers that Zeus serves and increasing capability via investments, operational upgrades, and progress from new product improvements. Within the near-term, we intend to increase amenities and add personnel to extend manufacturing on behalf of our prospects, and we’re excited to take care of our standing as a key employer in the communities the place we function.”
As one of many world’s main healthcare buyers, EQT invests in revolutionary corporations which are addressing a number of the most important challenges in healthcare as we speak, starting from life science startups to scaled international companies,” mentioned Eric Liu, Accomplice, Head of North American Personal Fairness and Co-Head of International Healthcare. “This acquisition represents a extremely thematic funding for EQT, given our longtime concentrate on the medical expertise trade and our expertise partnering with family-founded companies. With EQT’s deep experience and broad community of advisors within the healthcare sector, we stay up for persevering with our monitor file of making differentiated worth for all stakeholders.”
The transaction is anticipated to shut in Q1 2024, topic to regulatory approvals and customary closing situations.
Piper Sandler Firms acted as monetary advisor to EQT Personal Fairness and Simpson Thacher & Bartlett LLP offered authorized counsel. Goldman Sachs & Co. LLC acted as monetary advisor to Zeus and Freshfields Bruckhaus Deringer LLP offered authorized counsel. The Personal Credit score enterprise inside Goldman Sachs Asset Administration will function the Administrative Agent and lead lender within the Senior Secured financing to help the transaction.
With this transaction, EQT X (goal fund dimension of EUR 20.0 billion and a tough cap of EUR 21.5 billion) is anticipated to be 25-30 % invested (together with closed and/or signed investments, introduced public presents, if relevant, and fewer any anticipated syndication) based mostly on its goal fund dimension.
