US-based industrial technology solutions provider Ametek has agreed to acquire medical device manufacturer Paragon Medical in an all-cash transaction worth about $1.9bn.

Ametek has signed a definitive agreement with the affiliates of American Securities, a private equity company, to acquire Paragon Medical.

The US conglomerate said that the acquisition of Paragon would significantly expand its presence in the medical technology field and provide access to new market segments.

Also, Paragon’s products and capabilities will complement its existing medical businesses and enable geographic and customer expansion opportunities, said Ametek.

The transaction is subject to certain customary closing conditions, including necessary regulatory approvals.

Paragon Medical CEO Wil Boren said: “American Securities has been an outstanding partner to us as we have navigated unprecedented macroeconomic challenges and surpassed ambitious growth milestones.

“Our partnership has enabled us to advance our mission of helping healthcare manufacturers turn new innovations into market-leading products, and we are excited about the opportunities ahead for our employees and customers as we begin this new chapter.”

Established in 1991, Paragon provides highly engineered medical components and instruments to blue-chip and emerging original equipment manufacturers (OEMs) in different medical end markets.

The company serves a wide range of speciality applications, including orthopaedics, minimally invasive surgery, robotic surgery, and drug delivery.

It offers single-use and consumable surgical instruments and implantable components.

With fully integrated commercial, operations and organisational infrastructure, the company makes around $500m in annual sales.

Jefferies and Piper Sandler Companies served as financial advisors to Paragon, while Weil, Gotshal & Manges and Hunton Andrews Kurth served as legal counsel to American Securities and Paragon on the transaction.

American Securities founder and CEO Michael Fisch said: “In collaboration with Paragon’s exceptional management team, we are proud to have helped grow the Company and to have created significant value for our investors.

American Securities MD Will Manuel said: “Since our acquisition in October 2020, Paragon has made significant investments to expand its capabilities and better serve its customer base.

“Paragon’s success in the face of supply-chain challenges brought on by the pandemic is a testament to the expertise of its leadership team and the critical nature of its offerings, and the Company is poised to build on this momentum for future growth.”

Earlier this year, Paragon Medical teamed up with Invibio Biomaterial Solutions to support the manufacturing of composite PEEK-OPTIMA Ultra-Reinforced medical trauma devices.