The EQT X fund will become the owner of medical tubing tech provider Zeus under an agreement announced today.
Financial terms of the acquisition were not disclosed. Bloomberg reported that the deal values the company at $3.4 billion, citing “people with knowledge of the matter.”
The transaction is expected to close in Q1 2024, subject to regulatory approvals and customary closing conditions. John Groetelaars, the CEO of Hillrom until its $12.5 billion sale to Baxter in 2021, will become Zeus’ executive chair after the transaction closes.
The news comes more than two years after Zeus founder Frank Paul Tourville Sr. died at age 87. The Tourville family’s sale to EQT will enable investments in additional capacity, R&D, and operational excellence, according to Zeus and EQT.
Zeus officials expect continued growth as aging populations require more catheter-delivered structural heart, peripheral and neurovascular therapies.
Since its founding in 1966, Zeus has pioneered the design, development, and extrusion of fluoropolymer tubing for medical devices and select industrial applications. The Orangeburg, South Carolina–based company has eight facilities across the U.S. and one in Letterkenny, Ireland, with roughly 2,400 employees serving more than 300 customers in more than 100 countries. Its customers include leading medical device manufacturers, contract device manufacturing organizations and more.
“We are excited to join the EQT family,” Zeus CEO Steve Peterson said in a news release. “Zeus has gained significant momentum in recent years due to a strategic global expansion plan. This acquisition accelerates that momentum and growth by supporting future expansion, new product innovation, process improvements, technological transformation, and enhanced capabilities.”
Groetelaars said: “In the near term, we intend to expand facilities and add personnel to increase production on behalf of our customers, and we’re excited to maintain our status as a key employer in the communities where we operate.”
EQT officials say the Zeus transaction will bring their EQT X target fund — with a size of €20 billion and a hard cap of €21.5 billion — to a level of 25–30% invested.
Ethan Waxman, a partner within EQT Private Equity’s advisory team, said that EQT officials view Zeus as uniquely positioned within its end markets due to its unmatched material science and process expertise.
“We are excited to partner with the company and invest in its next phase of growth, its employees, and the communities it serves, while maintaining Frank Tourville Sr.’s values and commitment to excellence, which are shared by EQT,” he said.
