In what was described as a “strategic move” to expand capacity and enter the medical device molding market in the U.S., Balda AG purchased 100% of the shares of C. Brewer Company located in Anaheim, CA, and HK Plastics Engineering Inc. in nearby Oceanside, CA, for US $50 million and US $15 million respectively. The deals were finalized Dec. 31, 2012. These acquisitions are part of Balda’s buy-and-build strategy for its Medical Group as the company extends its reach in the “strategically important” U.S. market.
Dr. Rolf Eilers, CEO of Balda Medical Group, told PlasticsToday, in a meeting at the MD&M show in Anaheim, that the company has “a lot of liquidity and is nearly debt free.” The company’s new strategy, which it rolled out last year, was to invest in the U.S., which is “a most important market,” said Eilers.
|From left, Chuck Brewer III and Michael Brewer of C. Brewer Co., and Rolf Eilers, managing director of that company's new owner, Balda Medical GmbH & Co. KG.|
Balda AG currently has molding operations in Europe, Asia, and now the U.S. Last May, according to a report in Bloomberg, Balda AG began looking for acquisitions for its medical unit. The company hired an adviser to help it with the process.
Eilers commented that the first priority when the company began its search for U.S. companies was that the companies be in the medical market currently. However, he stressed that they also looked for companies that had good management, a good reputation in the medical market, and that could help build Balda Medical Group’s presence in the U.S.
Meeting customer requirements for a regional supplier is also an important part of Balda Medical Group’s strategy. “In conversations we had with different customers we found they wanted to have a global, as well as a technically capable supplier with global production sites,” Eilers commented. “We want to offer capacities and be a global company providing regional capabilities in a region for a region.”
C. Brewer Company is a multi-generational family-owned business specializing in precision injection molded plastic products and molds for the medical, optical, automotive and electronics markets. C. Brewer has facilities in Anaheim, Irvine, and Ontario, California.
HK Plastics Engineering Inc. is also a family-owned company and is a full-service supplier of injection molded plastic components and injection molds. More than 80% of HK’s revenue comes from medical customers, particularly in the area of medical diagnostics. HK Plastics Engineering was founded in 1974 by Horst Krippner. HK’s emphasis on medical products and innovation made the company a good fit for Balda, according to information from HK Plastics Engineering.