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Nordson (Westlake, Ohio) will pay $705 million in cash to acquire Vention’s advanced technologies division, which has locations in New Hampshire, Tennessee, Ireland, Minneapolis, Massachusetts, California, Colorado and Israel.
MedPlast (Tempe, Ariz.) is meanwhile purchasing Vention’s device manufacturing services division for an undisclosed sum. The device manufacturing services business has locations in New Jersey, Michigan, Puerto Rico and Costa Rica.
Both deals are expected to close during the first half of 2017.
Vention’s advanced technologies business designs, develops and makes minimally invasive interventional delivery devices, catheters and advanced components.
“This acquisition aligns with the medical growth strategy we have consistently articulated, brings significant scale to what is already one of Nordson’s fastest growing businesses, and enhances strategically important capabilities including design and development, extrusion, complex medical tubing and balloon manufacturing, nitinol forming and other specialty material expertise,” Nordson CEO Michael F. Hilton said in a news release.
MedPlast officials see the acquisition of Vention’s device manufacturing services business as further bolstering the company’s position as a major services provider to original equipment manufacturers. MedPlast (Tempe, Ariz.) will double in size as it adds more capabilities in assembly and packaging.
Once the acquisition is complete, MedPlast will encompass 22 manufacturing facilities in North and Central America, Asia and Europe. The company will employ 3,500 engineers, technicians and assembly workers with expertise producing surgical, orthopedic, diagnostic and other medical devices.
“This acquisition will significantly strengthen MedPlast’s leadership position in the medical device manufacturing industry,” MedPlast CEO Harold Faig said in a news release.
“We will provide our customers a broad spectrum of integrated manufacturing capabilities and services from strategic locations around the world. This is something our customers have been asking for, and we are committed to continuing to expand our capabilities in areas that will bring value to our customers,” Faig said.
Medical device industry suppliers have seen a spate of mergers in recent years as OEM customers demand more capabilities from their contract manufacturers.
“We serve many of the same customers who will benefit from our combined offering and shared commitment to providing the highest quality standards and facilities in the industry,” said Bill Flaherty, president of Vention Medical’s Device Manufacturing Services business.
MedPlast isn’t done acquiring companies, either. Company officials say they are well-funded for acquisitions after receiving investment dollars in December 2016 from JLL Partners, a middle-market private equity firm, and Water Street Healthcare Partners, a strategic investor focused on the healthcare industry.
“This is the first of what we expect will be more strategic acquisitions to build MedPlast into a market leader. Water Street and JLL are working closely with management to identify and pursue opportunities that will achieve MedPlast’s goal of offering customers a comprehensive, integrated portfolio of end-to-end product solutions,” said Kevin Swan, a partner at Water Street.
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