Novanta has completed the acquisition of Riverpoint Medical from Arlington Capital Partners. Riverpoint is a category leader in high-growth minimally invasive surgical consumables, including advanced surgical fibers and related technologies for sports medicine, trauma, and cardiovascular surgical applications. Riverpoint designs and manufactures IP-protected, private-label products for leading medical OEM customers, with a portfolio spanning suture anchors, implantable materials, sutures, and surgical instruments.
The acquisition is expected to double Novanta’s recurring medical consumables revenue to roughly $300 million and push medical end-market exposure to 60% of total revenue. Riverpoint’s differentiated position is built on proprietary material science and coating technologies, including osteoconductive materials and coatings, along with its ability to own the 510(k) clearance process end-to-end for its customers. Novanta said the deal also unlocks a $2 billion incremental addressable market through shared OEM customer relationships and strengthens the company’s regional, FDA-registered manufacturing footprint.
The transaction is expected to generate a high single-digit return on invested capital by year three, achieve the company’s return hurdle rate by year five, and be immediately accretive to Novanta’s organic growth, adjusted gross margins, adjusted EBITDA growth and margins, and cash flows. The deal is also expected to contribute $0.18 to $0.25 of adjusted earnings per share in 2027, the first full year after the close, with additional detail on the impact to Novanta’s 2026 financials to be provided on the company’s upcoming second quarter earnings call.
Riverpoint is headquartered in Portland, Oregon, with manufacturing operations in Portland and San Jose, Costa Rica. Riverpoint Medical will be reported under Novanta’s Medical Solutions operating segment.
KEY QUOTE:
“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. 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.”
Matthijs Glastra, Chair and CEO, Novanta
KEY QUOTE:
“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. 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.”
Matthijs Glastra, Chair and CEO, Novanta
