Genstar Capital Management, a middle market private equity firm that focuses on investments in selected segments of the industrial technology, healthcare, financial services, and software industries, reported the acquisition of Tecomet (Wilmington, Massachusetts), a precision contract manufacturer supporting the medical device and aerospace & defense industries, in partnership with the company's management. Tecomet was previously a portfolio company of Charlesbank Capital Partners.

Founded in 1964, Tecomet manufactures orthopedic implants, precision surgical instruments, trauma plates and photochemical etched products for device customers. Tecomet also manufactures precision components to the aerospace & defense industry, producing products used in missile & satellite propulsion systems, vision systems, and infrared applications.

Genstar will partner with the Tecomet management team including Bill Dow and John Connolly to continue the company's impressive growth trajectory. Bill Dow, Tecomet's CEO, said, "Tecomet has become a trusted partner for our customers by providing differentiated manufacturing capabilities combined with industry-leading quality and reliability. We look forward to our partnership with Genstar as we share a similar vision towards continuing Tecomet's growth both organically and through acquisitions. Genstar has a proven track record of growing companies in the industrial and healthcare industries and we are excited to utilize their capital, expertise and network to help Tecomet accelerate its growth."

Rob Rutledge, Principal at Genstar Capital, said, "Tecomet is led by an outstanding management team that we are excited to partner with. Bill Dow, John Connolly and the rest of Tecomet's employees have built the company into one of the premier precision manufacturers for the medical device and aerospace & defense industries, driving growth both organically and through the sourcing and integration of strategic acquisitions. Genstar is eager to partner with the Tecomet management team to expand the company's capabilities, product offering and geographic reach while continuing to provide excellent quality and service to its customers."

In other dealmaking news:

• IPC The Hospitalist Company (North Hollywood, California), a national hospitalist physician group practice company, reported that it has acquired two Michigan-based practice groups: Bruce G. Johnson, DO, PC, based in Roseville; and Allen Trager, DO, PC, located in Flint. In addition, the company acquired the practice of Victor Toledano, MD, PA, based in Fort Lauderdale, Florida. Each of the acquired practices is located in markets where IPC already has an established presence.

Commenting on the acquisitions, R. Jeffrey Taylor, president/COO of IPC, said, "These transactions represent IPC's ongoing commitment to support the growth of our core markets, both in acute care and post-acute care, which continue to hold much opportunity for expansion.

With the effects of healthcare reform becoming a reality for hospitalists, regional practice groups increasingly look to IPC as a source of stability and support while they avail themselves of our financial and administrative resources in order to further their goals of improving outcomes and quality of patient care."

Patient encounters from the three transactions are expected to be approximately 44,000 on an annualized basis. With these acquisitions, a total of 19 acute and post-acute hospitalist practices chose to join IPC in 2013, representing a combined total of approximately 950,000 incremental patient encounters.

• AtriCure (West Chester, Ohio), an Atrial Fibrillation (Afib) medical device provider, and Endoscopic Technologies (San Ramon, California), d/b/a Estech, have entered into a definitive merger agreement under which AtriCure has agreed to acquire Estech for a cash-free, debt-free up-front payment of around 2.1 million shares or $34 million of AtriCure common stock and up to $26 million in additional consideration based on the achievement of certain revenue-based milestones. The transaction is subject to customary closing conditions and is expected to close in the next several weeks. AtriCure shareholder approval is not required.

Estech makes a portfolio of innovative surgical ablation devices that enable physicians to perform a variety of traditional and minimally invasive procedures using Estech's proprietary temperature controlled RF energy.

AtriCure expects that the transaction will increase sales and marketing expense as well as research and development expenditures in order to accelerate clinical development and commercial sales of the combined product portfolio. While these expenses will increase on absolute dollar basis, AtriCure expects these expenses to decrease as a percentage of sales beginning in 2015. AtriCure expects the transaction to be dilutive to earnings in 2014 and accretive in 2015 and beyond.