Sweden-based Nolato has signed an agreement to acquire US-based medtech company GW Plastics in a deal valued at around $230m (SEK2bn).

The acquisition of GW Plastics will help Nolato to increase its volumes significantly, as well as expand operations in the medical solutions business area. It will allow to better serve customers in the Asia, Europe and North America.

Established in 1955, GW Plastics has expertise in offering complex injection-moulded thermoplastic and silicone solutions.

GW Plastics provides products and solutions suitable for use in different healthcare applications, including medical devices and surgical instruments, drug delivery systems and diagnostic applications, multicomponent and multi-purpose healthcare devices, as well as medical packaging.

GW Plastics’ products are mostly used in medical device applications

The company’s products are mostly used in medical device applications, while to a lesser extent in the vehicle systems.

Based in Bethel of Vermont, GW Plastics employs around 1,100 people at its seven manufacturing facilities in the US, Mexico, China and Ireland.

GW Plastics reports annual sales of around $207m (SEK1.8bn) and an EBITA margin of around 7%.

The deal is expected to be completed in September, following the requisite US regulatory approvals.

Nolato president and CEO Christer Wahlquist said: “GW Plastics is a well-managed, well-invested company that is a great fit with our corporate culture.

“The business, which has historically demonstrated healthy organic growth, has extensive know-how in engineering and technology. Together with its size and geographic presence, this provides an ideal strategic combination with Nolato and enables significant market synergies over time.”

Nolato is engaged in the development and manufacturing of products with polymer materials such as plastic, silicone and TPE for customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.

In December 2016, Nolato announced the acquisition of Swiss firm Treff, which offers technically advanced precision components for various industrial segments.