A&E Medical Corp., a company owned by West L.A.-based private equity firm Vance Street Capital, has purchased RTI Surgical’s cardiothoracic closure business for up to $60 million.

Farmingdale, N.J.-based A&E, a manufacturer of cardiovascular medical devices, acquired the business early this month during a sale aimed at reducing the debt of RTI, a global surgical implant company based in Alachua, Fla.

The deal comes 18 months after Vance Street added A&E to its portfolio of medical, aerospace, defense and industrial firms.

“RTI’s cardiothoracic business is an excellent strategic fit with A&E,” said Vance Street Partner Brian Martin in a statement. “The combination of the two businesses will further enhance A&E’s reach across the world’s leading cardiovascular hospitals.”

The acquisition cost $54 million in cash, plus $6 million in potential milestones, RTI announced early this month. The proceeds will pay down a portion of the company’s debt and support strategic investments as RTI extends its credit facilities.

The company provides surgeons with biologic, metal and synthetic implants used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures.

It has entered into a multiyear manufacturing agreement to make existing products under A&E’s ownership as well as design and build new ones.

Its cardiothoracic closure business has been a market leader in the advanced sternum closure market through its cable-based plate designs.

A&E has manufactured medical and other devices since 1968. Its products range from temporary cardiac pacing leads to electrosurgical instruments to scissors and industrial wire cables.

Vance Street was listed in April by the Business Journal as the 37th-largest private equity firm in Los Angeles County as ranked by assets under management. It held assets of $275 million in middle-market businesses in the aerospace, defense, industrial and medical sectors.

To date, its partners have overseen investment of more than $1.8 billion in more than 100 acquisitions, according to its website.

– Dana Bartholomew

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