Deal Brief | Manning Advisors LLC

Aug 04 / 2014
Comments Off on Tecomet to acquire Symmetry Medical’s OEM Solutions Business

Tecomet to acquire Symmetry Medical’s OEM Solutions Business

Tecomet and Symmetry Medical (NYSE:SMA) announced today that Tecomet will acquire Symmetry’s OEM Solutions Business for $450 million in an all cash transaction. OEM Solutions manufactures orthopedic implants, instruments, and cases and is based in Warsaw, Indiana. The Numbers Relying on Symmetry Medical’s published numbers for the last four reported quarters:
	Symmetry Medical OEM Solutions	Q1 2013 through Q1 2014 ¹ ($ thousands)
	Revenues		$316,196
	Operating Income ²		$29,025
	Estimated EBITDA²		$42,325
	Est. EBITDA Multiple on $450 million transaction		10.6X
¹ Source: Symmetry Medical financial reports on file with Securities and Exchange Commission ² Includes adjustments for one-time and non-recurring events by Manning Advisors
Analysis The big get bigger. Tecomet has been an acquirer in the recent past, buying Teleflex’s OEM orthopedics business in 2012. The combined entity looks to have consolidated revenues of over $400 million. This transaction is another example of supply chain consolidation forming dominant players of over $100 revenue. It also illustrates the enhanced premiums consolidators will pay for dominant market/customer position. For More Information Please contact Richard W. Sager at Manning Advisors at rsager@manningadvisors.com or directly at (585) 315-8413.

Jun 16 / 2014
Comments Off on Medtronic to Acquire Covidien – Issues for the Supply Chain

Deal Brief

Medtronic to Acquire Covidien – Issues for the Supply Chain

Medtronic’s announcement Sunday night that it intends to acquire Covidien points to continuing consolidation in the medical supply chain with carryon benefit to large contract manufacturers.

The Deal

Medtronic (NYSE: MDT) will pay $35.19 in cash and .95 of a Medtronic share per share of Covidien. The transaction values Covidien (NYSE: COV) shares at 29% premium to the Friday closing price. The total value of the deal is $42.9 billion. The combined annual revenues of the two firms is just over $27 billion, making the new entity the second largest medical device manufacturer just behind J&J with $29 billion in sales.

Issues for the Supply Chain

In the short term there should be no changes of significance for suppliers of either company. Medtronic and Covidien are too large and have too much risk on the table to begin merging their supplier bases for some time. This transaction, however, should serve as a warning to the supply chain. The Medtronic/Covidien deal is the second large combination among the 30 largest OEMs in the last two years and the third in four years. We see fewer large OEMs over time with correspondingly fewer large contract manufacturers supporting their outsourcing needs. Contract manufacturers under $50 million must concentrate on a strategy that will allow them to prosper in a world of fewer giants.

On the other hand, contract manufacturers with sales of over $100 million and a broad portfolio of capabilities will continue to benefit from consolidation.

For More Information

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

Oct 31 / 2013
Comments Off on Ames acquires select assets of Ferro Corporations’s Metal Powders

Deal Brief

Ames acquires select assets of Ferro Corporations’s Metal Powders

Ames Advanced Materials Corporation has acquired select assets of Ferro Corporation’s Metal Powders business unit.

Manning Advisor advised Ames on this transaction.

Oct 17 / 2013
Comments Off on Helix Medical acquires MedVenture Technology Corp.

Deal Brief, Medical Device

Helix Medical acquires MedVenture Technology Corp.

Helix Medical LLC announced the acquisition of MedVenture Technology Corp., a 260 person medical device design and manufacturing firm specializing in catheter technology.

Manning Advisors advised Helix on this transaction.

Jun 25 / 2013
Comments Off on Royal DSM completes acquisition of Kensey Nash

Deal Brief, Life Sciences, Medical Device

Royal DSM completes acquisition of Kensey Nash

Royal DSM, a 9 billion euro specialty materials company servicing the pharma, food, life sciences, and automotive markets has acquired Pennsylvania-based Kensey Nash. Kensey Nash focuses on regenerative medical products including specialty polymers and collagen-based products used in a host of medical practice areas.

Royal DSM paid approximately $360 million or $38.50 per share for Kensey Nash stock. Manning Advisors estimates the deal multiple at 12.7X EBITDA.

Oct 17 / 2012
Comments Off on Helix Medical acquires MedVenture Technology Corp.

Deal Brief, Medical Device

Helix Medical acquires MedVenture Technology Corp.

Helix Medical LLC announced the acquistion of MedVenture Technology Corp., a 260 person medical device design and manufacturing firm specializing in catheter technology.

Manning Advisors advised Helix on this transaction.

Aug 09 / 2012
Comments Off on Helix Medical to acquire 50% of Cambus Medical

Deal Brief, Medical Device

Helix Medical to acquire 50% of Cambus Medical

Helix Medical LLC announced an agreement to acquire 50% of Cambus Medical, an Irish medical components manufacturer specializing in hypotubes. Helix already holds a 50% of VistaMed, an Irish medical contract manufacturer with ties to Cambus.

Helix will provide Cambus with expansion financing in 2012 and plans to complete the equity transaction in January, 2013.

Aug 09 / 2012
Comments Off on Fenner plc acquires American Industrial Plastics

Deal Brief, Plastics

Fenner plc acquires American Industrial Plastics

Fenner plc via its Texas-based Fenner Advanced Sealing Technologies group has acquired Ameican Industrial Plastics of Daytona Beach, FL. American specializes in maching plastics for high-value applications in the medical, defense, and aerospace industries.

No terms were announced.

Jul 18 / 2012
Comments Off on Tecomet acquires Teleflex OEM ortho business unit

Deal Brief, Medical Device

Tecomet acquires Teleflex OEM ortho business unit

Teleflex will sell the orthopedics segment of its Teleflex Medical OEM business unit to Tecomet for $42.5 million. The Wisconsin-based ortho segment focuses on components and assemblies. 2011 revenues were reported at $36 million by American City Business Journals.

The transaction will be all cash.

Jun 27 / 2012
Comments Off on Saes Getters SpA to acquire outstanding shares of Memry GmbH

Deal Brief

Saes Getters SpA to acquire outstanding shares of Memry GmbH

Saes Getters announced it will acquire the entire share capital of Memry GmbH in two tranches. Prior to the announcement Saes Getters owned 60% of the nitinol products manufacturer.

The first tranche, to be completed by July 15, 2012, values 20% of Memry GmbH’s shares at 500,000 euros. The second tranche, giving Saes Getters full ownership, will be completed in 2013 or 2014 Reuters reported.

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Posts Categorized / Deal Brief

Tecomet to acquire Symmetry Medical’s OEM Solutions Business

The Numbers

Analysis

Medtronic to Acquire Covidien – Issues for the Supply Chain

Ames acquires select assets of Ferro Corporations’s Metal Powders

Helix Medical acquires MedVenture Technology Corp.

Royal DSM completes acquisition of Kensey Nash

Helix Medical acquires MedVenture Technology Corp.

Helix Medical to acquire 50% of Cambus Medical

Fenner plc acquires American Industrial Plastics

Tecomet acquires Teleflex OEM ortho business unit

Saes Getters SpA to acquire outstanding shares of Memry GmbH

Manning Transactions

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