Consolidation in the medical device space
M&A deals in the continue unabated in medtech. Medtronic, for example, recently came to an agreement with Cardinal Health on a portion of Medtronic’s patient monitoring and recovery business. Cardinal Health will pay $6.1 billion in cash, confirming months of speculation that the world’s largest medical device maker was looking to slim down.
Becton Dickinson meanwhile plans a $24 billion acquisition of C. R. Bard.
With a shrinking customer base of OEMs, contract manufacturers are also merging to add capabilities and stay competitive. For example, private equity giant Kohlberg & Co. recently bought specialty plastics manufacturer Pexco and merged it with its PPC Industries holding to create Spectrum Plastics Group.