RTI Surgical, a global surgical implant company, sold its cardiothoracic closure business to A&E Advanced Closure Systems (A&E Medical), a cardiovascular medical device OEM and a portfolio company of Vance Street Capital, for $54 million in cash plus an additional $6 million in contingent cash consideration.

RTI intends to use the proceeds from the sale to pay down a portion of its term loan as it extends the maturity of its existing credit facility through September 2019.

In regards to extending RTI’s credit facility, TD Bank and First Tennessee Bank served as the co-lead banks.

Concurrent with the sale of the business, RTI has entered into a multi-year contract manufacturing agreement whereby RTI will continue to support the cardiothoracic business under A&E Medical’s ownership through the manufacturing of existing products and the engineering, development and manufacturing of potential future products.

In connection with the sale transaction, Stephens acted as financial advisor to RTI Surgical and Holland & Knight as legal counsel. Paul Hastings acted as legal counsel to A&E Medical.

“The sale of our cardiothoracic closure business is a significant first step toward focusing our business and advancing our efforts to return RTI to long-term profitable growth through disciplined execution and building scale to extend distribution of our high-quality products in those areas that offer the greatest opportunities to benefit our customers, employees and shareholders,” said Camille Farhat, RTI CEO. “We are in the initial stages of our journey and continue to take a methodical approach to evaluating our assets, the attractiveness of the markets in which they reside, our ability to successfully operate those businesses, and whether we are the right owner to grow them over the long term.”