Essel Propack Buys 74% Stake in US Medical Device Business

Packaging materials maker Essel Propack Ltd. has bought 74% in U.S.-based Medical Engineering & Design Inc, the company said.

The enterprise value of the Minneapolis, MN-based firm, which supplies specialised disposable medical devices, is $10 million, R. Chandrasekhar, president of the Indian company, told Reuters.

It is a profitable company with an annual revenue of $5 million, he added. “It is a good bargain.”

“This acquisition gives us access into a different genre of customers and also flexibility in terms of component making,” he said.

The acquisition will be funded partly through debt and partly by internal accruals of Essel’s medical devices business.