MedPlast has signed an agreement to acquire advanced surgical and orthopedics (AS&O) product lines from Integer Holdings for $600m in cash.
Integer’s AS&O product lines will compliment MedPlast’s portfolio of manufacturing solutions and helps the company to expand its presence as an outsourced contract manufacturer of medical devices.
The acquired business will strengthen MedPlast’s front-end design, development and prototyping services, in addition to expanding its metals manufacturing capabilities such as machining, stamping, coating and metal forming.
Integer president and CEO Joe Dziedzic said: “After this divestiture and paying down debt with the proceeds, we expect to be a $1.2 billion company with higher margins, increased net earnings, greater returns on invested capital, and significantly lower debt leverage.
‘This increased financial flexibility will enable us to grow our leadership position in our Cardio & Vascular and Cardiac & Neuromodulation product lines as we partner with customers to deliver life-changing innovation.”
Upon completion of the deal, MedPlast’ sales are expected to become double to around $1bn. Integer’s portable medical product line is not part of the transaction.
Subject to customary closing conditions, the deal is expected to complete in the third quarter of this year.
MedPlast CEO Brian King said: “This acquisition will further broaden our offerings and strengthen our ability to provide our customers with innovative solutions to meet their challenging needs.”
Last year, MedPlast also acquired Vention Medical’s device manufacturing services business and Coastal Life Technologies to expand its portfolio of services into assembly and packaging.
In 2016, MedPlast partnered with health care strategic investment firms such as Water Street Healthcare Partners and JLL Partners to extend its operations.
Integer is the medical device outsource (MDO) manufacturer, which serves the cardiac, neuromodulation, orthopedics, vascular, advanced surgical and portable medical markets.
MedPlast, which offers end-to-end solutions for medical device OEMs, has around 6,000 engineers, technicians and assembly workers at manufacturing facilities across Asia, Central America, Europe and the US.
Image: MedPlast to acquire advanced surgical and orthopedics product lines from Integer Holdings. Photo: courtesy of adamr / FreeDigitalPhotos.net.