Boston — Novanta has completed its acquisition of Riverpoint Medical from Arlington Capital Partners, expanding its presence in minimally invasive surgical consumables and medical technology manufacturing.
Riverpoint develops advanced surgical fibers and related products used in sports medicine, trauma and cardiovascular procedures. The business will become part of Novanta’s Medical Solutions operating segment.
“Riverpoint Medical is a market-leading, high-growth surgical consumables business growing revenue and cash flow at twice Novanta’s rate, and the acquisition is expected to double Novanta’s recurring medical consumables revenue to roughly $300 million while pushing medical end-market exposure to 60% of total revenue,” said Matthijs Glastra, Chair and Chief Executive Officer of Novanta.
“Beyond the top-line boost, we believe the deal unlocks a $2 billion incremental addressable market through shared OEM customer relationships and strengthens Novanta’s regional, FDA-registered manufacturing footprint, positioning the overall company for accelerated, higher-margin growth.”
Novanta said the transaction is expected to generate a high single-digit return on invested capital by the third year and reach the company’s target return threshold by the fifth year.
The acquisition is also expected to immediately improve Novanta’s organic growth, adjusted gross margin, adjusted EBITDA growth and margin, and cash flow.
Novanta expects Riverpoint to contribute between $0.18 and $0.25 in adjusted earnings per share in 2027, the first full year following the acquisition.
The company said it will provide additional details about the transaction’s expected effect on its 2026 financial results during its upcoming second-quarter earnings call.
