Surmodics: FTC Challenges GTCR’s Acquisition Over Antitrust Concerns
Deal News | Mar 10, 2025 | EIN
The U.S. Federal Trade Commission (FTC) has taken legal action to block the proposed merger-acquisition of Surmodics by GTCR due to concerns over anticompetitive practices. The proposed deal, valued at $627 million, would see GTCR, which holds a majority stake in Biocoat, a major manufacturer of hydrophilic coatings, merge with Surmodics, the leading company in the same sector. The FTC argues that a merger would eliminate healthy competition and increase market concentration, thereby violating the 2023 Merger Guidelines established jointly with the Department of Justice. Surmodics, however, defends the merger, labeling it pro-competitive and beneficial to stakeholders including shareholders, customers, and patients. They have expressed intent to contest the FTC's litigation in court. Under the new administration led by appointed FTC chairman Andrew Ferguson, regulatory priorities have shifted, including a mandate for executive branch approval of regulatory actions.
Sectors
- Medical Device Manufacturing
- Private Equity
- Antitrust and Competition Law
Geography
- United States – The FTC's legal action and the companies involved are based in the United States, making this the primary geographical focus.
Industry
- Medical Device Manufacturing – The article centers around the manufacture and supply of medical device coatings, a vital component in the broader medical device industry.
- Private Equity – The involvement of GTCR, a private equity firm, in the acquisition attempt of Surmodics highlights the intersection of private equity in strategic industry acquisitions.
- Antitrust and Competition Law – The legal challenge from the FTC is based on antitrust regulations aimed at preventing excessive market concentration and preserving competition.
Financials
- $627 million – The valuation of GTCR's proposed acquisition of Surmodics.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Surmodics | Target Company | Company | A leading manufacturer in the outsourced hydrophilic coatings sector for medical devices. |
| GTCR | Buyers or Bidding Company | Company | A private equity firm aiming to acquire Surmodics. |
| Federal Trade Commission (FTC) | Government | Government | A U.S. government agency preventing anticompetitive business practices. |
| Biocoat | Other Company | Company | GTCR-controlled company and a major competitor in the hydrophilic coatings market. |
| U.S. Department of Justice (DoJ) | Government | Government | Collaborated with the FTC on the 2023 Merger Guidelines. |
| Daniel Guarnera | FTC Bureau of Competition Director | Person | Official spokesperson from the FTC on competition issues related to the merger. |
| Andrew Ferguson | FTC Chairman | Person | The newly appointed chair of the FTC under the Trump Administration. |