Established in 1966, Zeus is a pioneer in the design, development, and extrusion of fluoropolymer tubing for medical devices and selected industrial applications. Following the acquisition, EQT announced that John Groetelaars, former CEO of Hillrom and EQT Industrial Advisor, will serve as Executive Chairman of Zeus.
For over 50 years, Zeus has been supplying innovative and crucial components that enhance the effectiveness and performance of highly complex catheters used in life-saving, minimally invasive medical procedures. The company is headquartered in Orangeburg, South Carolina, and has eight locations in the United States and one in Letterkenny, Ireland. With a global workforce of around 2,400 employees, Zeus serves over 300 customers in more than 100 countries, including leading medical device manufacturers, device contract manufacturing organizations, academic institutions, and industrial customers in fields such as aerospace, semiconductor, automotive, and other industries.
Zeus‘ components enable the performance of minimally invasive interventional procedures which lead to significantly better health outcomes compared to traditional open surgeries, including faster patient recovery, reduced pain, and lower costs. The company has experienced substantial growth as a leading innovator of polymer-based solutions. As the population ages and chronic diseases become more prevalent, the increasing demand for high-performance catheters to support therapeutic areas such as structural heart, peripheral, and neurovascular procedures is expected to further drive Zeus‘ growth.
EQT will support Zeus with investments in additional capacity, research and development, and operational excellence to cater to the rapidly growing medical areas utilizing minimally invasive technologies. These investments will allow the company to continue its tradition and reputation of collaborating with its customers‘ research and development groups to remain at the forefront of next-generation technologies.
Ethan Waxman, Partner at EQT Private Equity, said, „EQT has been closely monitoring the medical device component industry for several years, and we believe that Zeus is uniquely positioned due to its unparalleled materials science and processing expertise in the end markets it serves. We look forward to partnering with the company and investing in its next phase of growth, its employees, and the communities it serves, while upholding the values and commitment to excellence shared by EQT and Frank Tourville Sr.“
Steve Peterson, President and CEO of Zeus, added, „We are excited to join the EQT family. In recent years, Zeus has gained significant momentum through a strategic global expansion plan. This acquisition accelerates this momentum and growth by supporting future expansion, new product innovations, process improvements, technological transformation, and extended capabilities.“
As one of the world’s leading healthcare investors, EQT invests in innovative companies addressing some of today’s most significant healthcare challenges, from life science startups to large global enterprises,“ said Eric Liu, Partner and Head of North American Private Equity and Co-Head of Global Healthcare. „Given our longstanding focus on the medical technology industry and our experience working with family-owned businesses, this acquisition is a highly thematic investment for EQT. With EQT’s extensive expertise and broad network of advisors in the healthcare sector, we look forward to continuing our track record of creating differentiated value for all stakeholders.“
The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and customary closing conditions.
Piper Sandler Companies served as a financial advisor to EQT Private Equity and Simpson Thacher & Bartlett LLP provided legal counsel. Goldman Sachs & Co. LLC acted as a financial advisor to Zeus, and Freshfields Bruckhaus Deringer LLP provided legal counsel. The private credit business of Goldman Sachs Asset Management will act as administrative agent and lead lender for the senior secured financing supporting the transaction.
Upon expected syndication, this transaction is anticipated to position EQT based on the targeted fund size.