Novanta Riverpoint Medical acquisition closes at $1.45bn

Novanta has completed the Novanta Riverpoint Medical acquisition, buying the surgical products developer from Arlington Capital Partners in a transaction valued at $1.45 billion, PE Hub reported. The deal adds medical consumables, specialized manufacturing capabilities and a US Food and Drug Administration-approved domestic production base to Novanta, according to Arlington managing partner Matt Altman.

Under the agreement, Novanta is paying $1.2 billion in cash at closing and may pay a further $250 million milestone amount in the first quarter of 2027, PE Hub reported. The transaction had been announced in June.

Riverpoint Medical is based in Portland, Oregon. The company develops and makes surgical threads and other consumable products used in minimally invasive procedures, including sports injury repair, trauma treatment and cardiac surgery, according to PE Hub.

Its products use fiber-based, polymer and bioabsorbable materials. Riverpoint sells to original equipment manufacturers, which then market the products under their own brands. The company also handles the full 510(k) clearance process for those customers, a service PE Hub said can reduce the time and expense required to bring products to market.

What does Novanta get from Riverpoint Medical?

Novanta gains a business serving a customer base similar to its own, along with additional technologies and access to medical consumables, which Altman described to PE Hub as a strategic priority for the buyer. He said the fit between the companies was commercial and cultural, and that Riverpoint could maintain or improve its growth trajectory under Novanta.

Altman told PE Hub that Riverpoint’s manufacturing capabilities were scarce and in demand among large medical device OEMs. He contrasted that position with more commoditized manufacturing categories where industry capacity is broader, saying reliable specialized capacity is valued by both strategic buyers and private equity investors.

Arlington invested in Riverpoint in 2019. During Arlington’s ownership, Riverpoint’s revenue grew at a 15 percent compound annual growth rate and the company more than tripled in size, mainly through organic expansion, according to PE Hub.

That growth included additions to management, expanded commercial operations, greater US manufacturing scale and entry into new markets through Costa Rica’s nearshore medical manufacturing hub, PE Hub reported. Riverpoint also made one tuck-in deal, acquiring surgical products maker CP Medical from Theragenics in 2024, adding related products and customers.

Why the deal matters for private equity exits

The sale comes as private equity sponsors face pressure to return capital by selling older portfolio companies. Altman told PE Hub he expects that pressure to support stronger transaction activity in the second half of 2026, particularly as the gap between seller price expectations and buyer bids has narrowed.

He said the exit market remains split by asset quality. In Altman’s view, stronger companies are attracting substantial interest from both private equity and strategic buyers and are receiving premium valuations, though he said pricing is below the peak levels seen in 2021.

Altman also pointed to corporate carve-outs as a contributor to exit activity, with strategic owners selling businesses outside their main areas of focus. PE Hub reported that public equity valuations near record highs, led by large technology companies, have also helped support valuations for smaller and mid-market public healthcare companies, encouraging take-private transactions.

The IPO market is also open to some fast-growing healthcare companies, though Altman said activity there is not at the same level as private equity and strategic M&A. He told PE Hub that buyer interest in healthcare transactions and healthcare manufacturing is rising, while challenged assets may take longer to sell or require more tailored deal structures.

This story draws on original reporting from PE Hub.