CVC Catalyst to Acquire Majority Stake in WillowWood from Blue Sea Capital, the Arbogast Family and Management

CVC Catalyst III has announced its agreement to acquire a majority stake in WillowWood Holdings Inc., a leading manufacturer of prosthetic products, for an undisclosed amount. The transaction, which is expected to close in the third quarter of 2026, is subject to regulatory approval. Alongside CVC, existing investors including Blue Sea Capital, the Arbogast family, and management will reinvest significantly, ensuring continuity in leadership and strategic direction.

WillowWood, founded in 1907 in Mt. Sterling, Ohio, has established itself as a pioneer in the prosthetics industry, particularly known for its innovative gel liner technology. This product serves as a critical interface between a patient's residual limb and their prosthesis, and the company offers a diverse portfolio of approximately 1,000 stock-keeping units (SKUs) along with custom liner capabilities. The company has expanded its offerings to include a growing range of prosthetic feet and knees, which have been developed to enhance mobility for amputees. The leadership team, including co-CEOs Mahesh Mansukhani and Daniel Rubin, has been instrumental in transforming WillowWood into a comprehensive platform for prosthetic solutions since partnering with the Arbogast family in 2018.

The strategic rationale behind CVC Catalyst's investment is to leverage its expertise in the healthcare sector to accelerate WillowWood's growth trajectory. The partnership aims to enhance research and development efforts and pursue an active mergers and acquisitions strategy to broaden the company's product offerings and geographic reach. A significant focus will be placed on expanding WillowWood's presence in international markets, particularly in Europe, where there is substantial growth potential. CVC's global scale and MedTech expertise are expected to provide valuable support in this endeavor.

The acquisition aligns with broader trends in the healthcare sector, particularly in the MedTech space, where innovation and market expansion are critical for sustained growth. CVC Catalyst's track record of successful investments in healthcare, including companies like Rayner and Spectrum, positions it well to support WillowWood during this pivotal phase. As the demand for advanced prosthetic solutions continues to rise, driven by an aging population and increasing rates of limb loss, the partnership is poised to capitalize on these market dynamics.

In conclusion, the acquisition of WillowWood Holdings by CVC Catalyst represents a significant development in the prosthetics market, combining a century of innovation with strategic investment to enhance product offerings and expand internationally. As the transaction progresses towards closure, stakeholders will be closely monitoring its implications for WillowWood's growth and the overall landscape of the healthcare sector.