Vance Street Capital has acquired Applied Plastics, a provider of specialty coatings used in the medical device industry.
Applied Plastics specializes in the application of polytetrafluoroethylene (PTFE) on wires and other metal-based components that are used in the medical device industry with a primary emphasis on the catheter market. The company applies its specialty coatings using several methods including electrostatic spraying, electrostatic fluidized bed, conventional powder and liquid spraying, and other proprietary techniques.
Customers of Applied Plastics include medical device OEMs and contract manufacturers. The company was founded in 1953 and is headquartered in Norwood, MA (www.appliedplastics.com).
Applied Plastics is led by CEO Dave Ring who is investing alongside Vance Street in this transaction and has retained a material ownership position in the company. “We are excited to partner with Vance Street as we look toward our next chapter of growth,” said Mr. Ring. “Vance Street’s highly relevant investing and operating experience in the medical manufacturing space made them the ideal partner to help Applied execute on the exciting growth we see across our customer base.”
“Dave Ring has built an industry leading and highly differentiated business that is well positioned across the fastest growing medical end markets,” said Brian Martin, a managing partner at Vance Street. “We’re excited to support the Applied team during this next chapter of growth.”
The acquisition of Applied Plastics is Vance Street’s sixth investment out of Vance Street Capital II LP and is its fourth investment in the medical space in the past three years. The firm’s other Fund II medical investments include Motion Dynamics, a manufacturer of wire-based micro-components and sub-assemblies found in micro-catheters (acquired in September 2016); A&E Medical, a medical device OEM focused on single-use products used in cardiovascular procedures (acquired in February 2016); and Adam Spence Vascular Solutions, a designer and manufacturer of high pressure braided tubing and extrusions for the cardiovascular end markets (acquired in September 2017 and exited in May 2018).
“Applied Plastics is an ideal opportunity for Vance Street to leverage our operating experience and network within medical manufacturing to continue to build on the world-class and highly-proprietary coatings capabilities Applied has built over the past 25 years,” said Mike Janish, a managing partner at Vance Street.
Vance Street makes control investments in companies with enterprise values of $30 million to $250 million and EBITDA of $3 million to $25 million. Sectors of interest include aerospace, defense, industrial, and medical. The firm is based in Los Angeles (www.vancestreetcapital.com).
Senior debt for this transaction was provided by BMO Sponsor Finance and Neuberger Berman. Raymond James was the financial advisor to Applied Plastics.
© 2019 Private Equity Professional | February 1, 2019