One Equity Partners has agreed to invest $75 million in ArthroCare through a private placement of series A preferred stock that is convertible into a 15% stake. The company develops and manufactures minimally invasive surgical products for use in soft-tissue surgery. One Equity's Chris Ahrens and Greg Belinfanti will join the company's board in connection with the investment.
Since the beginning of 2006, private equity firms have invested in 38 other surgical device companies, according to the PitchBook Platform. 2009 has been a relatively strong year for the sector with six investment, including two add-ons by RoundTable Healthcare Partners. In 2008 there were a few good sized acquisitions for the sector such as Warburg Pincus's $239 million acquisition of Lifecore Biomedical and Babson Capital Partners and Linden's carveout of Corpak MedSystems for $100 million.