Bill Ellerkamp, Contributing Writer01.30.17
Last year was particularly active for acquisitions in medtech contract manufacturing. More than 40 deals were completed, with strong interest and activity on both the buy and sell sides. The large majority of deals in 2016 were follow-on acquisitions by portfolio companies of private equity firms, with many of the targets being private companies with annual revenue of less than $25 million. Notably, Kelpac/PPC Industries and Arch Global Precision, portfolio companies of Kohlberg & Company and Strength Capital Partners respectively, each had two add-on acquisitions—as did Phillips-Medisize, a Golden Gate Capital portfolio company—before they were acquired by Molex later in the year. The Phillips-Medisize (Molex) and Creganna Medical (TE Connectivity) acquisitions were certainly the largest deals of the year, and are reflective of the growing interest of corporate strategic buyers in building substantial platforms in the industry quickly.
Private equity certainly continues to play a key role in the industry by providing succession and liquidity opportunities for smaller company entrepreneurs, and providing growth capital and steward
Private equity certainly continues to play a key role in the industry by providing succession and liquidity opportunities for smaller company entrepreneurs, and providing growth capital and steward
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