Attorney General Kwame Raoul of Illinois and Attorney General Keith Ellison of Minnesota have joined forces with the Federal Trade Commission (FTC) to pursue legal action against the acquisition of Surmodics Inc. by GTCR BC Holdings LLC. The lawsuit aims to halt the merger of these two leading manufacturers of medical device coatings, citing concerns over anti-competitive practices.
Raoul expressed concerns about the proposed deal, stating, “The proposed acquisition of Surmodics by a private equity firm represents a troubling trend of wealthy investors attempting to limit competition and innovation in a market while extracting advantages that come from eliminating competitors.”
The joint suit argues that, if approved, the acquisition would give GTCR and Surmodics control over more than half of the outsourced hydrophilic coatings market. These coatings are essential for medical devices such as catheters and guidewires. Raoul emphasized that the existing competition between the companies benefits consumers through lower prices and product innovation.
The lawsuit has been filed in the Northern District of Illinois and seeks a temporary restraining order to prevent the deal's completion. The aim is to ensure a thorough examination of the case in a full administrative hearing to assess the implications of the acquisition.