The deal includes the acquisition of the medical business of Precision Concepts International as well as Winston-Salem, North Carolina-based Precision Concepts Group
Biomerics to merge with Precision Concepts Medical. (Credit: Adam Radosavljevic from Pixabay)
Biomerics, a US-based contract manufacturer for the interventional medical device market, has agreed to merge with ONCAP IV’s portfolio company, Precision Concepts’ medical business (Precision Concepts Medical).
The financial terms of the deal were not disclosed.
The deal includes the acquisition of the medical business of Precision Concepts International (PCI) as well as Winston-Salem, North Carolina-based Precision Concepts Group (PCG).
Both Precision Concepts Medical businesses, based in the US, have operations in Harrisonburg in Virginia, Mebane and Winston-Salem in North Carolina, Haina in Dominican Republic, and Alajuela in Costa Rica.
Biomerics CEO Travis Sessions said: “Precision Concepts Medical is a recognised leader that offers unique capabilities in micro-metals machining and stamping, injection micro-moulding, and micro-assembly processes.
“The addition of these capabilities and manufacturing footprint extends Biomerics’ offerings as a leading supplier to the world’s largest medical device OEMs.”
Following the transaction, the combined entity will own more than 1.2 million ft² of manufacturing space at 13 locations.
Biomerics will also receive an investment from ONCAP.
The company has around 250 engineers in its product development team and supplies products to 20 original equipment manufacturers (OEMs) in the markets like structural heart, robotic surgery, electrophysiology, cardiovascular disease, and endoscopy.
Precision Concepts CEO Ray Grupinski said: “We are excited for the value this partnership brings to our existing customer base in Costa Rica and interventional OEM partners around the globe.
“The thriving medical device ecosystem in Costa Rica and the Dominican Republic aligns well with Biomerics’ culture and innovative core.”
According to Biomerics, the deal is expected to make the company the largest contract manufacturer in the Costa Rican market, with 290,000ft2 of manufacturing space and about 100 engineers on site.
Furthermore, it will offer Biomerics another foreign manufacturing facility, its first in the Dominican Republic.
As per the terms of the transaction, the management staff of the Precision Concepts Medical sites will remain in place. Each business will carry on independently until the deal is finalised, the contract manufacturer said.
The transaction is anticipated to conclude in June 2023, subject to receiving all necessary regulatory approvals and satisfying other usual closing conditions.