MedPlast, a portfolio company of Water Street Healthcare Partners and JLL Partners, has acquired the medical device manufacturing services business of Vention.
MedPlast offers a range of engineering and manufacturing capabilities that support original equipment manufacturers (OEMs) with producing diagnostic, orthopedic, surgical and other medical products. The company employs more than 1,800 engineers, technicians and assembly workers who specialize in technical molding, advanced processing, device assembly and implantables with expertise in plastics. MedPlast has eleven ISO-certified facilities across the United States, China, Mexico and the United Kingdom and is headquartered in Tempe, AZ (www.medplastgroup.com).
The acquisition of Vention’s medical device manufacturing services business broadens MedPlast’s manufacturing capabilities by adding facilities in New Jersey, Michigan, Puerto Rico and Costa Rica and bolsters MedPlast’s position as one of the top services provider to medical original equipment manufacturers. The transaction is expected to double the size of MedPlast.
“This acquisition is a first and important step in our strategic plan to expand our offering to customers,” said Harold Faig, CEO of MedPlast. “Our goal is to build on our core manufacturing and engineering capabilities to provide our customers with a comprehensive portfolio of end-to-end product solutions.”
Vention is a provider of design, engineering and manufacturing services to makers of complex medical devices and components. The company specializes in molded components, and finished device assembly and packaging for the interventional and minimally invasive surgical markets. The company is headquartered in Denver (www.ventionmedical.com).
In a separate transaction, Vention will also be selling its Advanced Technologies Division – a maker of custom specialty components, including heat shrink tubing, extrusions, medical balloons, and specialty tubing – to publicly traded Nordson Corporation (NASDAQ:NDSN) (www.nordson.com).
Water Street and JLL Partners acquired MedPlast in December 2016 from Baird Capital. Baird and CEO Harold Faig formed MedPlast in 2008 when they acquired and combined ATP Engineered Rubber & Plastics Group and K&W Medical Specialties. Add-on acquisitions for MedPlast under Baird ownership included United Plastics Group in February 2012 and UK-based Orthoplastics in September 2013.
Water Street invests from $50 million to $500 million in companies that are active in four health care sectors: medical and diagnostic products and devices; specialty distribution; outsourced health care services; and specialty pharmaceutical products and services. The firm has particular expertise in corporate divestitures from healthcare companies. Water Street, founded in 2005, has more than $1 billion of capital under management and is based in Chicago (www.waterstreet.com).
JLL Partners invests in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare, building products, financial services, aerospace, and business services. Since its founding in 1988, the firm has invested approximately $5 billion across seven funds. JLL Partners is based in New York (www.jllpartners.com).
© 2017 Private Equity Professional | March 31, 2017
