Uncategorized
Election of New Managing Director
On Oct. 1st, 2017, Richard W. Sager has been elected as the new Managing Director by a unanimous vote of Manning’s Board of Directors.
In the News
Manning Partner Talks About Value-Based Reimbursement’s Impact on Medtech’s Supply Chain
Manning Partner provides his analysis of shifting paradigms for insurance reimbursements, and how suppliers capable of assisting OEMs with the new product requirements stand to expand their businesses.
Read the article here.
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.
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:
- Plastics News story on both transactions.
- Business Wire story on Nordson acquisition.
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.
Company Sale, In the News
Manning Deal Alert: AMETEK, Inc. Acquires Laserage Technology Corporation
AMETEK, Inc. (NYSE: AME) has acquired Laserage Technology Corporation and its wholly-owned Silicon Valley based subsidiary, Venta Medical, Inc.
Manning Advisors advised Laserage on this transaction.
AMETEK’s announcement may be found here.
For more information please contact Richard W. Sager at rsager@manningadvisors.com or at (585) 315-8413 directly.
Company Sale, Deal Brief, Plastics
Manning Deal Alert: Forum Plastics
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.
White Papers
New White Paper from Manning Advisors
We have published a new study,“Should Precision Manufacturers Specialize or Diversify? Rewards and Risks Drawn from 10 Years of Data.”
The white paper is now available on Slideshare here. We look forward to your comments and questions.
Our email subscribers get a first look at all news and reports – if you’d like to join that list, please sign up here.
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.
Acquisition, Deal Brief, In the News, Medical Device
Greatbatch to Acquire Lake Region Medical for $1.73 Billion
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.
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.
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.