Merger creates global provider of sterile processing supplies

Water Street Healthcare Partners, a strategic investor focused on the healthcare industry, had led a merger of US-base Key Surgical and European business Interlock, and has invested in the newly combined company

Key Surgical and Interlock Medizintechnik will provide
sterile processing and operating room supplies on a global scale

US-based Key Surgical and Interlock Medizintechnik (Germany) have merged to create one of the world’s leading providers of sterile processing and operating room supplies.

Headquartered in Eden Prairie, Minnesota, Key Surgical has grown to become a premier US provider of products that clean, protect and identify surgical instruments since it was founded in 1988. Interlock, a leading European provider to central sterile supply departments, recently expanded its portfolio and geographic reach with its acquisition of Clinipak in the UK last year.

As one company, Key Surgical and Interlock will offer a broad range of sterile processing and operating room products and supplies to nearly 10,000 hospitals and surgical centers around the world.

“We are tremendously excited about the combination of our companies and the benefits it will bring to our customers,” said Scot Milchman, chief executive officer, Key Surgical. “Key Surgical and Interlock are highly regarded in the US and Europe for our expertise, broad product offering and exceptional customer service. 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.”

Brian O’Connell, president and chief operating officer, Key Surgical, said: “Our partnership with Water Street will allow us to gain access to a highly regarded team with deep medical product and distribution expertise and a network of resources to support our growth.”

Kevin Swan, partner, Water Street, added: “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.”

Milchman will serve as CEO of the newly combined company, O’Connell as president and COO, and John Savage as CFO. Mads Fiig, a longtime healthcare executive, will serve as managing director of European operations. Gerhard Baum, one of the founders of Interlock, will remain with the company to focus on customer and supplier relationships.

Key Surgical, Interlock and Clinipak will continue to operate and serve customers under their existing names and brands.

Financial terms of the transaction are not being disclosed.

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