DuPont (NYSE:DD) has a deal to buy medtech supplier Spectrum Plastics Group from private equity firm AEA Investors.
The $1.75 billion deal is expected to close by the end of Q3 2023, subject to regulatory approvals and other customary closing conditions.
Atlanta-based Spectrum has more than 2,200 employees and provides advanced manufacturing of specialty medical devices and components. The contract manufacturer says its customers include 22 of the top 26 medical device original equipment manufacturers, with a focus on structural heart, electrophysiology, surgical robotics and cardiovascular.
Spectrum has consistently grown at high single-digit rates, Dupont said. The company estimated that 10% of DuPont’s total revenue will come from healthcare after the deal.
“We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity,” DuPont CEO and Executive Chair Ed Breen said in a news release. “Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and with strong growth and profitability. With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”
Spectrum launched under its current name in 2017 after former owner Kohlberg & Co. merged Pexco with PPC Industries. New York City-based AEA Investors purchased Spectrum the following year.
“Spectrum is a best-in-class company for the development and advanced manufacturing of specialty medical devices and components,” AEA Investors Partner Rahul Goyal said. “Through investments in the commercial and engineering organizations and expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability.”