Advantage Manufacturing Technologies (AMT)

The Middle Branch Partners team advises Advantage Manufacturing Technologies during its acquisition by Medin Technologies

Situation Review

Advantage Manufacturing Technologies (AMT) is a Monroe, Washington based contract manufacturer of spine and extremity implant devices to leading orthopedic companies. The company was privately held at the time of sale.

• AMT was in financial distress and engaged KGI to conduct a negotiated sale process.

• The active shareholder sought a partner that could provide capital to repair the balance sheet and provide resources to add needed capital equipment as well to support revenue growth and improve operational efficiency.

• Active shareholder desired to stay on in a leadership role with the acquiring entity.

Transaction Process

• M&A Strategy
  A Confidential Information Memorandum was prepared, with broad outreach to Private Equity, as well as strategic acquirers.

• M&A Process

  A number of offers were received followed by management meetings at the company leading to a fully negotiated LOI.

• Finalizing the Acquisition
  The Shareholder closed a deal with the buyer that offered the best plan to restore the company to financial health combined with the opportunity to drive growth.

“We are excited to have completed this important add-on acquisition. Medin’s strategic goal is to provide world-class quality and performance across multiple product and component lines as a full-service manufacturing partner to our orthopedic OEM customers. Together, with AMT Medical, we can execute that strategy on a more comprehensive scale. Just as we have done with Medin Technologies, we plan to invest aggressively in AMT Medical, and over time, integrate the two companies’ operations more thoroughly to deliver value to our customers.”

— Bill Donaldson, CEO, Medin Technologies

Quote source: Biospace

Results

Medin Technologies acquired 100% of AMT via a newly formed wholly owned subsidiary.

• The seller will remain in place under a negotiated employment agreement.

• AMT will operate as a business unit of Medin Technologies and serves as a strong entry point for the new combined entity in the competitive implant manufacturing market sector.

• Deal negotiation provided the optimal outcome for the sellers and the employees of the company.