ZQ Capital Sells Surgical Specialties for About $800 Million

(Bloomberg) -- China-focused private equity firm ZQ Capital sold a U.S. medical device manufacturer to buyout firm GTCR for about $800 million including debt, people familiar with the matter said.

A consortium led by ZQ Capital, founded by a pair of former Barclays Plc and JPMorgan Chase & Co. bankers, and Vivo Capital sold Surgical Specialties Corp., according to a release on Monday, which didn’t give the transaction value.

A representative for ZQ Capital declined to comment on the value. A spokesperson for GTCR didn’t respond to a request for comment.

Other co-investors in the original 2017 purchase of the Massachusetts-based device maker included Aretex Capital, China Orient Asset Management, Fung Shing Investment, FS KKR Capital, Cathay Venture and Nan Fung Group, the release showed.

Chicago-based GTCR is making the acquisition through its Corza Health Inc. venture, which focuses on medical investments. The buyout firm is merging Surgical Specialties with TachoSil Fibrin Sealant Patch, a ready-to-use surgical patch maker that it bought from Takeda Pharmaceutical Co., according to a separate statement.

The combined group will be called Corza Medical, the statement shows. Gregory Lucier, who previously led Life Technologies Corp. and sold it to Thermo Fisher Scientific Inc., will be executive chairman of the company.

Surgical Specialties develops and produces high-performance sutures and surgical needles, according to its website. The company has manufacturing facilities in the U.S., Mexico, England, Germany and China.

Hong Kong-based ZQ Capital was founded in 2016 by Simon Shen and Helge Weiner-Trapness, formerly with Barclays and JPMorgan respectively, according to its website. The firm is focused on cross-border deals that help global companies expand in China’s market.

GTCR has invested across the health-care services and life sciences industries, according to its website. As of 2019 the firm had completed more than 90 health-care deals, including platform investments and add-on acquisitions, with over $13 billion since 2010.

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