Consolidation in the Spinal Implant Market: Zavation Acquires CoreLink, Backed by GemSpring Capital and The Stephens Group Retains a Minority Stake

The spinal implant and instrumentation system market has been expanding rapidly, with the aging population and rise in spinal disorders. In fact, according to Global Market Insights, the spinal implants and surgery devices market size is expected to exceed $16.5 billion by 2026. Companies are constantly looking for ways to get ahead in the race to provide innovative solutions and grow their businesses.

This drive towards growth and innovation led to the announcement of Zavation Medical Products, LLC’s acquisition of CoreLink, LLC through a sale of the business. This agreement was supported by GemSpring Capital Management, LLC and The Stephens Group. Zavation is set to lead the combined business with Jeffrey Johnson, its CEO, while Jay Bartling, CEO of CoreLink, will become Chairman of the Board of Directors. The news is another example of consolidation in the spinal implant market.

CoreLink is a leading, vertically-integrated provider of spinal implant and instrumentation systems. Over the years, the company gained a reputation for developing novel devices and instrumentation for spinal surgery. Recently, they ventured into supporting lateral spine procedures. One of their key innovations was the development of the proprietary Mimetic Metal® technology driven by in-house additive manufacturing techniques. Additionally, they invested significantly in medical education and developed a state-of-the-art Bioskills facility in St. Louis, Missouri, to meet evolving surgical needs.

The Stephens Group was CoreLink’s first institutional investor. They worked closely with the management team to successfully consolidate three facilities into one world-class facility, expand the company’s product line, invest in additive manufacturing, complete CoreLink’s first acquisition, establish a seasoned board, and grow the company significantly.

“We congratulate Jay and the entire CoreLink team on this well-earned milestone,” said Grant Jones, Managing Director at The Stephens Group. “We’re proud of the success and impact we have achieved during our time together. We look forward to seeing the company continue to grow alongside Zavation.”

Zavation is a company that designs, engineers, and manufactures a portfolio of spinal hardware and biologics, covering cervical, thoracolumbar, interbody fusion, interventional spine, and minimally invasive surgery. The company was founded in 2012 and has experienced exceptional growth, with commercialization of over 25 product families since inception. The company operates a newly constructed 75,000 square foot vertically integrated facility in Flowood, MS.

With the acquisition, Zavation and CoreLink will continue to operate under their respective brands while The Stephens Group retains a minority stake in the combined entity. The move is set to provide the necessary resources, expertise, and manpower to expedite innovation and growth.

According to Mike Fanelli, Managing Director at GemSpring, “We are excited about the acquisition of CoreLink given our long-standing focus on the spinal implant sector and partnership with Zavation. We believe the combination creates a differentiated and highly complementary platform with scale, world-class engineering and manufacturing capabilities, and a robust product portfolio.”

The acquisition of CoreLink by Zavation is expected to create a stronger entity with access to greater resources, expertise, and funding to expand their product lines. The combined company offers a highly complementary and differentiated platform with scale, world-class engineering and manufacturing capabilities, and a robust product portfolio across a variety of spinal disorders.

The spinal implant market has been expanding rapidly, thanks to technological advancements, aging demographics, and a rise in spinal disorders. According to a report from Research and Markets, the spinal implant market will grow at a compound annual growth rate (CAGR) of 5.5% between 2020 and 2027, driven by technological advancements, a growing and aging population, and increasing incidence of spinal disorders.

The acquisition of CoreLink by Zavation is an exciting development in the spinal implant market. Together, the two companies are uniquely positioned to offer innovative solutions and take a leading role in the sector. The Stephens Group retains a minority stake in the company and will no doubt continue to help drive growth. The transaction is expected to close in the coming weeks and the newly combined entity will begin operating immediately thereafter.