This morning Regeneration Technologies (RTI) and Tutogen announced their intent to merge. These are two of the larger players in the tissue processing business though their businesses have surprisingly little overlap. RTI has been more focused on allograft hard tissue for orthopedics, while Tutogen has primarily sold xenograft soft tissue for non-orthopedic applications.
The combined company will generate roughly $8 million of TTM EBITDA on $138 million of revenue, and have a market capitalization of $560 million, second only to Lifecell ($1.4 billion) among tissue processors. According to the companies, there is the opportunity for up to $6 million of additional EBITDA due to synergies.
