Eden Prairie's Key Surgical, which sells equipment and supplies to sterilize surgical tools, has merged with a major German company with a similar mission, creating a transatlantic infection-prevention company that will be based in the Twin Cities.
The merger of Key Surgical Inc., and Lensahn, Germany-based Interlock Medizintechnik GmbH brings two widely known brands in post-surgical tool disinfection under one roof, along with a third well-known name, Clinipak, which was owned by Interlock before the deal.
"Together we will offer hospitals and surgical centers a comprehensive portfolio of products and supplies that support the industry's highest quality standards for patient care and safety in the surgical setting," said a statement from Scot Milchman, CEO of Key Surgical. Milchman will serve as CEO of the combined company.
Financial terms of the merger were not released. The privately held company will have 180 employees, including 65 in the Twin Cities, and a catalog of 7,000 different products marketed in 70 countries, a company spokesman said via e-mail.
Water Street Healthcare Partners, the $2 billion Chicago-based equity firm that orchestrated the merger, indicated in a news release that the deal-making around surgical-tool disinfection supplies and equipment is likely to continue.
"Increasing numbers of hospitals are investing in infection prevention and patient safety initiatives. The combination of Interlock, Clinipak and Key Surgical creates a strong and extensive global platform for us to build on. We plan to work together to invest in the company's infrastructure and pursue acquisition opportunities that will strategically expand our product portfolio and geographic footprint," Water Street partner Kevin Swan said in a news release.
Key Surgical, Interlock and Clinipak brands will keep operating under their existing names and brands, according to the release.
Key Surgical was founded in 1988 by three nurses who wanted to build a single-source supplier for what at the time was a disparate array of products. In 2005, Milchman and future company President Brian O'Connell bought the company and expanded the portfolio to include thousands of products sold to hospitals worldwide. O'Connell will continue as president and chief operating officer of the combined company.
Water Street Healthcare Partners does deals with so-called "middle market" companies whose revenue falls in the middle of the pack for its market niche.
Joe Carlson • 612-673-4779