One of North America's most storied plastics processors, contract injection molder Phillips Plastics, has acquired Medisize, a processor of medical devices and pharmaceutical packaging, for €99.8 million ($142.7 million) from Ratos. Medisize's sales totaled €127.8 million in 2010 with an operating profit (EBITA) of €12.6 million. The move comes some eight months after Phillips was itself acquired by private equity form Kohlberg & Co.
Ratos, a Swedish private equity investment firm, formed Medisize after acquiring first Medifiq Healthcare, previously a division in the Finnish company Perlos group, in 2006 and then buying Medisize Medical, a division within the Swiss group Medisize Holding, in 2008. The two were merged with the Medisize Medical purchase.
Phillips (Hudson, WI) says the acquisition will strengthen its fast-growing medical business by increasing its European footprint and broadening its manufacturing capabilities. Phillips Plastics has annual sales in excess of $250 million, with approximately 1500 employees.
With combined revenues of just under $500 million, Phillips will become one of the medical industry's heavyweights for outsourced medical design and manufacturing. Willem van den Bruinhorst will continue as president of Medisize reporting directly to Phillips' president and CEO, Matt Jennings. Phillips already has a medical device joint venture in Ireland, CerBo Ltd., that it runs with partner ProTek Medical Ltd. It also has a JV in China, Wah Tsun, with Eastek International. Wah Tsun specializes in mold making, injection molding and assembly.
Phillips co-founder Robert Cervenka has been featured in our publications before including in this Spotlight article from 1998.
Said Jennings, "Medisize has a world-class management team and European footprint, with demonstrated capabilities in high-volume manufacturing and high-speed automation that will strengthen Phillips' service offering and global reach. This is a very positive development for each company's customers, suppliers, and employees." The acquisition is subject to regulatory approvals and closing conditions and is expected to be completed by the end of August 2011.
Medisize employs about 850 at five production facilities, one each in Finland (in Vantaa, its headquarters), Ireland, the Netherlands, Switzerland, and in the Czech Republic. Each of the facilities is equipped with injection molding capacity; the plant in the Czech Republic also has extrusion machinery, and the Swiss plant also has injection stretch and stretch blowmolding capacity. "In recent years, Medisize has improved its operational efficiency and made major investments in the sales organization and distribution. Medisize is a highly competitive and profitable niche player that has earned the increased confidence of major pharmaceutical companies due to the high quality of its operations. With the global company Phillips Plastics as its new owner Medisize can now take the next step, towards larger contracts and new geographic markets," commented Ratos CEO Arne Karlsson in a prepared statement.