Atalys has acquired precision moldmaker ROMOLD, Inc. of Rochester, New York. A.S. Freeman Advisors, LLC advised ROMOLD on this transaction. For more information please contact Tony Freeman. Anthony S. Freeman A.S. Freeman Advisors, LLC (917) 868-0772 tfreeman@asfreeman.com asfreeman.com
Deal Alert
Dear Colleague, I am pleased to announce the acquisition of Berg Manufacturing by Biomerics NLE. The Berg transaction notably extends Biomerics’ micromachining capabilities. A.S. Freeman Advisors advised Biomerics on the transaction. You can read the entire press release here. For more information on the medical device supply chain M&A market, please contact me at tfreeman@asfreeman.com or (917) 868-0772. Best regards, Tony Freeman
Biomerics has merged with Northeast Laser & Electropolish to form Biomerics NLE. A.S. Freeman Advisors advised Northeast Laser on the transaction. For more information please visit https://biomerics.com/biomerics-merges-with-northeast-laser-and-elecropolish.
WellWorx Energy has acquired Newgate Instruments, formerly a business unit of Joining Industries LLC. A. S. Freeman Advisors advised Joining Industries on this transaction.
Tecum Capital Partners and Western Allegheny Capital Partners have invested in Oberg Industries, Inc. A. S. Freeman Advisors advised Oberg Industries on this transaction
ARCH Global Precision has acquired Universal Precision Instruments, Inc. A. S. Freeman Advisors advised Universal Precision Instruments on this transaction.
Cadence, Inc., a medical device contract manufacturer has agreed to be acquired by the private equity firm Kohlberg & Company. Terms were not announced. Cadence had its origins in edged and pointed instruments and expanded to full contract manufacturing with the addition of assembly and additional metal working facilities. The company’s 2017 revenues were $96.7 million with $20 million in EBITDA. Kohlberg’s strategy has been to acquire platform companies with an eye to the acquisition of additional bolt-on acquisitions.
On April 6, 2018 NN, Inc. (NASDAQ:NNBR) announced that it would acquire Paragon Medical for $375 million cash. Indiana-based Paragon, a major orthopedic contract manufacturer, had 2017 revenues of $141 million and EBITDA of $24 million. The offer values Paragon at 15.6 times EBITDA on a nominal basis. NN stated that the multiple is best viewed as 9.3X because of significant Year 1 cost synergies including $7.8 million in Day 1 synergies. Details of the synergies were not presented. NN has been an active acquirer of medical device supply chain companies. In 2015 NN bought Precision Engineered Products (PEP), a diversified manufacturer notable for its medical focus. In 2017 NN acquired DRT Medical, an orthopedic machiner. It also acquired Bridgemedica, a device design company, in February 2018. While the Paragon deal multiple may appear high, there is a strategic rationale for NN’s actions. NN’s historic portfolio of industrial businesses have tended to be slower growth and lower potential profitability than medical suppliers. Last summer NN sold its precision bearing company for $375 million, cash still on the books as of year-end 2017. While NN may have paid a premium for Paragon, the move fits with their strategy of swapping businesses with a limited future for medical contractors. In that strategy NN joins Danaher, Teleflex, TE Connectivity, and ITW as American manufacturers changing direction and using significant resources to do so. For detailed information on the transaction please view NN’s presentation: http://phx.corporate-ir.net/phoenix.zhtml?c=110673&p=irol-Agreement Please contact Tony Freeman at tfreeman@asfreeman.com or (917) 868-0772 with comments and questions.
Oberg Industries, Inc. has acquired X-L Engineering Corp. A.S. Freeman Advisors advised Oberg on this transaction. Read more
MedPlast, Inc. announced it has acquired Coastal Life Technologies (CLT), a San Antonio, TX, contact manufacturer, assembler, and kitter of medical devices and procedure sets. Financial terms were not announced. The acquisition by private equity-backed MedPlast compliments MedPlast’s acquisition of Vention Medical’s Device Manufacturing Services earlier this year. A.S. Freeman Analysis: MedPlast’s acquisitions give the company the scale and range of services perceived as necessary to hold direct-to-OEM relationships. The acquisition of CLT expands MedPlast’s capabilities to offer complete devices as well as manage inventories for customers. Increasingly, contract manufacturers are rounding out there offerings to ensure they can deliver a complete device directly to the marketplace. For more information on the transaction please go to PR Newswire .