In one of the largest area deals announced in recent months, startup medical device contract manufacturer TriVirix International says it has received $25 million in private equity.

The Series D round was led by Grotech Capital Group of Timonium, MD, and New York-based Morgan Stanley Venture Partners (MSVP), and involved other new funds and existing investors. It brings the total amount in financing for TriVirix to more than $40 million in four years.

“The company is at an interesting convergence of reducing healthcare cost, improving patient care, and the opportunity to build a large, profitable company,” said Dave Bannister, general partner with Grotech.

In addition to Grotech and MSVP, new investors in this round include MDS Capital of Toronto, Atlanta-based SunTrust Equity Partners, Trelys Venture Partners of Columbia, SC, and Memphis Biomed Ventures.

Other repeat investors include Durham-based Aurora Funds, Frontier Capital of Charlotte, Northern Ireland-based Enterprise Equity and Crescent Capital, Charlotte Angel Partners, Tri-State Investment Group of Chapel Hill and Thompson Clive and Partners, a British firm that has an office in Raleigh.

Previous investors in TriVirix who did not take part in this latest round include Alpharetta, GA-based Cordova Ventures, Envest Ventures of Virginia Beach, California-based SHV Capital Ventures and Coastal Growth Partners of Florence, SC.

‘A great time to grow aggressively’

TriVirix says it expects revenues this year to grow five fold over the $5 million it reported in 2001 and will use its latest $25-million round of funding to grow its market base and services.

“It’s a great time to grow aggressively, while many other companies are scaling back,” Richard West, chief executive officer TriVirix, said in a statement. “We plan to expand our geographic reach and our service breadth with this new capital.”

TriVirix completed two acquisitions earlier this year with the purchase of a medical electronics assembly plant from Medtronic and a printed circuit board assembly plant from Fujitsu.

The moves added about $12 million in revenues to the company’s top line and about 125 workers to TriVirix’s work force, which is more than 200 people. As part of the deal, TriVirix is using the facilities to manufacture pacemaker and other components for Medtronic and circuit boards for Fujitsu.

‘Remarkable progress in just four years’

TriVirix was founded in 1998, when Aurora provided seed financing. It has participated in each of the four rounds of funding that the company has received since and led the previous round of $13.5 million last July.

“TriVirix has made remarkable progress in just four years,” said Jeff Clark, an Aurora general partner. “To go from an idea to a significant, global company in such a short period of time is a great accomplishment. We are pleased that some of the finest private equity firms in the country are joining us to build an even larger, more successful company.”

Based in Chapel Hill, TriVirix has medical manufacturing facilities in Minnesota and the United Kingdom. The company says it is attracting customers in the medical device and biotech industries.

TriVirix has contracts to manufacture electronic equipment for hemodialysis and blood analysis, hearing screening, cardiac measurement and defibrillation, patient monitoring, and various other medical diagnostic and therapeutic and biotech measurement and analysis applications.

“There is an accelerating trend toward outsourcing medical manufacturing,” said Fazle Husain, managing member of MSVP, “and TriVirix, with its unique focus on medical equipment, offers a solid solution and value proposition to its customers.”