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Deals of the Year 2022: Bank funding affords medical devices firm opportunity for expansion through acquisition    
In January 2021 Schivo Medical made its first acquisition with the purchase of Supreme Screw Products of New York. BOI Corporate Banking, selected by Schivo as its long-term banking partner, part-financed the US acquisition through the provision of a six year €22.5 million term-loan, as well as ancillary working capital and other facilities. The deal strengthens Schivo’s development and manufacturing footprint and complements its existing capabilities for minimally invasive surgery.
Waterford-based Schivo Medical is a leading outsourced medical component contract manufacturer with of experience in the manufacturing and development of complex components, sub-assemblies, and instruments for global leaders in the Life Sciences space.

Established over 25 years ago as a multi-industry outsourced component manufacturer, Schivo repositioned to focus on the medical and life sciences sectors in 2016. The business operates from a well-invested facility and enjoys long-standing, blue-chip customer relationships in a market with strong growth dynamics.
Ken Brady, director and Head of Origination at Bank of Ireland Corporate Banking.

MML Ireland invested in Schivo, alongside its industry leading team led by Graham Reeves, to use the company as a platform for organic and acquisitive growth. Since investing, Schivo Medical’s organic business has grown significantly and it has now embarked on a strategy of further growth through acquisition.

The US target company, SSP, was established in 1963 and is a leading supplier of precision machining, laser processing and assembly services for the medical device market. The acquisition strengthens Schivo’s development and manufacturing footprint, complementing its existing capabilities for minimally invasive surgery, and enables the group to serve its customers’ needs both globally and locally.

In Jan 2021, BOI successfully part-financed Schivo’s acquisition of Supreme Screw Products through the provision of a six year €22.5 million term loan, as well as providing a €3 million revolving credit facility for ancillary working capital and other facilities. GT, as debt advisor, led a competitive debt process and BOI Corporate Banking was delighted to be selected by Schivo as its long-term banking partner and successfully refinanced their operational clearing business to BOI, alongside funding the Supreme Screw Products acquisition, and providing further committed facilities to support Schivo’s continued growth plans.

Ken Brady, Director and Head of Origination, at Bank of Ireland Corporate Banking, commented: ‘Bank of Ireland was delighted to be chosen as Schivo Medical’s banking partner to fund its recent acquisition of Supreme Screw Products, which expands its markets to North America and gives it a strong platform to grow and deepen its capacity to provide sophisticated precision components and assemblies to innovative medical OEMs around the world.

‘From its world class manufacturing facility in Waterford, Schivo Medical has developed a market leading reputation in the provision of outsourced solutions to medical device and life science companies. Schivo Medical has significant growth ambitions and we look forward to supporting them as they continue to expand internationally.’

Advisers on the deal were: McCann Fitzgerald (Bank of Ireland); Grant Thornton (Financial DD and Tax DD provider); Schiff Hardin LLP (Legal DD).

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