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Posts Categorized / Deal Brief

  • Apr 24 / 2017
  • Comments Off on Deal Alert: Becton Dickinson to acquire CR Bard
Company Sale, Deal Brief, Medical Device

Deal Alert: Becton Dickinson to acquire CR Bard

Becton Dickinson (NYSE:BDX) announced on April 23, 2017 it will acquire CR Bard (NYSE:BCR) in a cash and stock deal totaling $24 billion. The price represents a 25% premium over Bard’s $253.07 Friday closing price per share.

The acquisition gives BD additional exposure in urology and oncology products. The combined companies are estimated to have over $16 billion in revenues in 2017. Bard’s revenues in 2016 were $3.7 billion.

The transaction continues the trend of large medical device OEMs combining as a means of extending growth and gaining dominance in specific market segments. In addition, BD hopes to gain $300 million in “synergies” in the coming years.

For more information, please contact Richard W. Sager, Managing Director, Manning Advisors at rsager@manningadvisors.com or at (585) 315-8413 directly.

  • Feb 21 / 2017
  • Comments Off on Deal Alert: Vention Medical Sells Units to Nordson and MedPlast
Deal Brief, Medical Device

Deal Alert: Vention Medical Sells Units to Nordson and MedPlast

Vention Medical has arranged to sell two of its core medical contract manufacturing units in a pair of Presidents’ Day transactions. Vention Advanced Technologies (AT), the company’s device design and build group, is to be acquired by Nordson Corporation (Nasdaq: NDSN) in a $705 million all cash deal. With announced sales $150 million and 2016 EBITDA of $48 million the proposed deal values Vention AT at 14.7X EBITDA.

Simultaneously, Vention will be selling its device manufacturing services business to Medplast Inc., a $275 million molder with a strong medical focus. The terms of the Vention-MedPlast deal were not announced but the transaction is expected to more than double Medplast’s size.

While a double transaction is unusual, the more telling messages are the interest of large players in medical components and assemblies to further build scale well into the hundreds of millions of dollars in revenue. Further, the extensive asset base made possible by the transactions cements positions with major OEMs, making it more challenging for smaller firms to retain their direct-to-OEM relationships.

For more information see the following:

To discuss this Deal Alert or the medical supply chain in general please contact Richard W. Sager, Managing Director, Manning Advisors at rsager@manningadvisors.com or at (585) 315-8413 directly.

  • Jul 28 / 2016
  • Comments Off on Manning Deal Alert: Forum Plastics
Company Sale, Deal Brief, Plastics

Manning Deal Alert: Forum Plastics

forum-plastics-logo

We are pleased to announce an asset transaction for Forum Plastics Inc. was completed by Squadron Capital LLC.

Manning Advisors advised Forum Plastics on this transaction.

For more information please contact Richard W. Sager by email, or by calling (585) 315-8413 directly.

  • Dec 09 / 2015
  • Comments Off on Manning Deal Alert: Technimark acquires Ci Medical
Acquisition, Deal Brief, Market Letters, Medical Device

Manning Deal Alert: Technimark acquires Ci Medical

Technimark LLC has acquired Ci Medical, formerly Classic Industries, as Technimark moves into the medical device supply chain.

Key points:

· Ci Medical offers Technimark a vertically integrated, plastics based medical contract manufacturer with services ranging from device design through molding and fulfillment

· Technimark gains plants in the United States, Mexico, Puerto Rico, and the United Kingdom

· This is a deal between private equity companies. Alteris, a longtime investor in CI Medical, is selling to the Pritzker Group, an established investor in the manufacturing companies

Terms of the transaction were not announced. The transaction indicates that there is still significant interest among diversified precision manufacturers in entering the medical supply chain. Manning Advisors will be releasing its study of the value and risk of diversification and specialization of the precision manufacturing fields in the next few weeks.

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  • Aug 28 / 2015
  • Comments Off on Greatbatch to Acquire Lake Region Medical for $1.73 Billion
Acquisition, Deal Brief, In the News, Medical Device

Greatbatch to Acquire Lake Region Medical for $1.73 Billion

GBgraphic

Greatbatch (NYSE:GB) announced it will acquire Lake Region Medical for $1,73 billion, creating the world’s largest medical device contract manufacturer with sales of over $1.5 billion. The transaction, scheduled to close in the fourth quarter, breaks down between cash, stock, and debt assumption. Specifically:

  • Lake Region shareholders will receive $478 million in cash
  • Additionally, Greatbatch will issue 5.1 million shares of stock, giving the Lake Region shareholders approximately 17% of the combined entity
  • Greatbatch will assume approximately $1 billion in Lake Region debt

The deal was estimated by industry watchers to have been done at 11.6X adjusted EBITDA.

The acquisition of Lake Region (which includes the former Accellent) by Greatbatch will prove a turning point in the evolution of the medical supply chain. The combination of two industry leaders in CV, neuro, MIS, and arguably ortho to form the first billion dollar plus contract manufacturer of its kind reflects the twin trends of OEM and supplier consolidation. While smaller contract manufacturers can thrive as specialists or by offering superior performance, it may be time for larger CMs to review strategy in light of this deal.

For more information on medical supply chain trends or to exchange views please contact Richard W. Sager at (585) 315-8413 or at rsager@manningadvisors.com.

Read more information on the transaction here.

  • Jun 15 / 2015
  • Comments Off on United Technologies and Sikorsky
Deal Brief, In the News

United Technologies and Sikorsky

United Technologies announced today that it plans to sell or spin off its Sikorsky helicopter unit by the end of the third quarter. UT plans to concentrate on its other aerospace initiatives. Today’s announcement comes on the heels of Sikorsky’s June 2 press release announcing 1,400 layoffs and closure of its Bridgeport, Connecticut facility.

Today’s NY Times article

For more information please contact Richard W. Sager at Manning Advisors at rsager@manningadvisors.com or at (585) 315-8413 directly.

As always, I look forward to your questions and comments.

  • Apr 09 / 2015
  • Comments Off on Deal Alert: Elos to acquire Onyx Medical
Acquisition, Deal Brief

Deal Alert: Elos to acquire Onyx Medical

Elos, the Swedish medical contract manufacturer, has announced the acquisition of Onyx Medical, an orthopedic supply chain manufacturer in Memphis, Tennessee. Key points:
 

  • Elos, a US$47 million company, is making its first major US acquisition
  • Onyx Medical specializes in trauma and extremity products. 2014 sales are reported at $16 million
  • Elos stated that it views Onyx as a platform acquisition

 
The transaction demonstrates the continued interest of European medtech companies in gaining US market share.
 
More information

  • Mar 09 / 2015
  • Comments Off on Alcoa to acquire RTI Metals, Inc.
Acquisition, Deal Brief, Metals

Alcoa to acquire RTI Metals, Inc.

Alcoa (NYSE:AA) announced today that it would acquire RTI International Metals, Inc. (NYSE:RTI) for $1.5 billion in an all-stock transaction coupled with assumption of debt. Key points:

  • The deal puts a 36% premium on RTI stock over last Friday’s close.
  • RTI’s most recent numbers put it at $794 million in revenues (ttm) and $115 million in EBITDA (source: CapitalIQ)
  • Alcoa’s primary interest is RTI’s titanium operations which will bolster Alcoa’s rapidly growing aerospace business

Alcoa expands its position in aerospace but what about Remmele?

RTI is a logical acquisition for Alcoa as it expands its specialty metals focus. A question for those in the medical supply chain is whether Alcoa will keep Remmele, RTI’s medical machining business in Minnesota.

To discuss this transaction and other trends in the medical supply chain please contact Richard W. Sager at Manning Advisors at rsager@manningadvisors.com or at (585) 315-8413 directly.

Read more on the transaction here.

As always, I look forward to your questions and comments.

  • Sep 17 / 2014
  • Comments Off on LSA Laser Acquired by AdvancedCath
Acquisition, Deal Brief

LSA Laser Acquired by AdvancedCath

AdvancedCath announced today the acquisition of LSA Laser of Plymouth, MN. LSA is a laser manufacturing specialist specializing in medical components and assemblies. LSA is unusual in laser space for its ability to work both medical metals and plastics.

Financial information regarding the transaction was not released.

Analysis

AdvancedCath is a rollup contract manufacturer focused on interventional products. Formed from TechDevice, AdvancedCath Technologies, MP&E, and now LSA, the company brings significant material, molding, balloon, guidewire, and device assembly expertise to this rapidly growing area of medicine. The AdvancedCath strategy of concentrating on certain high-value devices is challenging to execute but, when successful, leads to among the highest multiples in transaction value.

I look forward to your questions and comments via email, or directly at (585) 315-8413.

  • Aug 05 / 2014
  • Comments Off on Cadence Acquires Business Units From Plainfield Precision
Acquisition, Deal Brief

Cadence Acquires Business Units From Plainfield Precision

Cadence, Inc. announced today it has acquired three business units from Plainfield Precision. The units, located in Wisconsin, Massachusetts, and the Dominican Republic, add metal stamping and injection molding to Cadence’s portfolio of capabilities.

Financial information regarding the transaction was not released. Prior to the transaction Cadence announced revenues of $33.6 million for the first half of 2014.

Analysis

Cadence is known for carefully considered strategies. This acquisition continues their approach of expanding capabilities incrementally as a means of being a more strategic supplier to key customers. The Cadence website is located at www.cadenceinc.com.

I look forward to your questions and comments at rsager@manningadvisors.com or directly at (585) 315-8413.
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