Orchid Acquires Sandvik Medical Solutions

Orchid MPS Holdings LLC has agreed to purchase the Sandvik Medical Solutions (SMS) division of the Sandvik Group. The transaction is expected to be completed in March.


Sandvik Medical Solutions is a contract manufacturer of medical implants and instruments for the orthopedic and dental markets. 


“Orchid is very pleased to have SMS and its employees join the Orchid team,” said Mike Miller, Orchid’s CEO. “Sandvik brings a global footprint and a high-value expertise in casting, forging and machining of implants, and complex instruments to Orchid, allowing us to better serve our customers in the U.S., Europe and Asia.”

Claes Ekström, Orchid board member and a partner at Altor Equity Partners AB, the Europe-based private equity firm that owns Orchid, said the combination of Orchid and SMS will be able to provide a “unique offering” to customers.

Gary Henley, Orchid board member, said Orchid’s growth with the acquisition of SMS, demonstrates “Orchid’s commitment to supply-contract management and contract manufacturing for the orthopedic industry.”
 


SMS had sales of approximately $90 million in 2011 and has operations in the United Kingdom, India, China and the United States, employing 550 people.

According to Orchid, the combination of the firms’ contract manufacturing business in the orthopedic, dental and spinal industries will strengthen its influence in market, touching approximately 30 percent of the world’s orthopedic implants.

“The divestment of Sandvik Medical Solutions is in line with our strategy to exit operations outside of the defined core businesses. There is a strong industrial logic in combining Orchid and Sandvik Medical Solutions and we are convinced that Sandvik Medical Solutions will have a positive development with its new owners,” said Anders Thelin, president of Sandvik Venture.

Sandvik is based in Stockholm, Sweden. Orchid is headquartered in Holt, Mich. The company provides contract design and manufacturing for the orthopedic, dental and cardiovascular markets.