NewSpring Capital Successfully Exits Investment
January 04, 2008
Radnor, PA, January 4, 2008: NewSpring Capital is pleased to announce that its portfolio company, Scandius Biomedical, Inc., has been acquired by the surgical devices subsidiary of Covidien Ltd. (NYSE: COV), a leading global provider of healthcare products for an undisclosed amount. This segment currently sells a range of products for sports-related surgeries, including soft tissue repair devices and access products.
Covidien Ltd. spun off from Tyco International in June of 2007 and is the fifth-largest manufacturer of medical devices, with more than $10 billion in sales, selling in more than 130 countries worldwide. This is Covidien’s first acquisition and demonstrates their commitment to the growing sports surgery market. Covidien is a $10 billion company that does 40% of its business overseas, which would likely extend the distribution footprint of Scandius products significantly.
Based in Littleton, Mass, Scandius develops, manufactures and sells unique proprietary medical devices for the arthroscopic reconstruction of the Anterior Cruciate Ligament (ACL) of the knee and other sports injuries. The company sells two devices for arthroscopic reconstruction of the ACL: the Stratis ST Femoral Fixation system and the TriTis Tibial Fixation system.
The Stratis ST ACL system, which Scandius launched in November 2004, enables surgeons to perform soft-tissue ACL reconstruction arthroscopically to reduce surgical time and trauma to the patient. The system's instruments are designed to provide a simple, consistent technique to reduce procedural steps and eliminate complicated measurements, according to Scandius.
The TriTis system, launched in 2006, is designed to improve tibial strength in ACL reconstruction, facilitating better stability, range of motion, improved healing and other benefits. Torn ACL is the single largest sports-related injury, according to Scandius.
NewSpring Healthcare partnered with KBL Healthcare Ventures and Ivy Healthcare Capital in the December of 2003 Series B investment. In December of 2005 the existing investors were joined by Stockton Partners in the Series C investment to continue expansion of the company’s sales and marketing network and for continued R&D. Zev Scherl, General Partner at NewSpring Capital and a former Scandius board member, stated, “NewSpring is pleased to have shared in the successful growth, expansion and subsequent sale of Scandius. We are also pleased to have the experience of working with management in helping to execute the shared vision and strategy of the business.”
About Scandius Biomedical, Inc.
Scandius BioMedical, Inc. designs, manufactures and markets products for the orthopedic sports medicine market. The company was founded in 2000 to focus on accelerating innovative solutions for minimally invasive orthopedic sports medicine procedures. For more information please visit www.scandius.com.
About Covidien, Ltd.
Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines, including Surgical Devices, Energy-based Devices, Respiratory and Monitoring Solutions, Patient Care and Safety Products, Imaging Solutions, Pharmaceutical Products, Medical Supplies and Retail Products. Covidien has more than 43,000 employees worldwide in 57 countries, and its products are sold in over 130 countries. For additional information, please visit, www.covidien.com.