Sponsored By

Water Street Healthcare Partners and JLL Partners plan to expand MedPlast’s suite of capabilities into new areas to form an integrated portfolio of end-to-end product solutions.

Norbert Sparrow

December 7, 2016

2 Min Read
Private equity buy furthers MedPlast's goal of providing one-stop shop for global medtech OEMs

Healthcare investment firm Water Street Healthcare Partners (New York, NY) and middle-market private equity company JLL Partners (Chicago) announced today that they have acquired MedPlast Inc. (Tempe, AZ), a global services provider to the medical device industry. Financial terms of the transaction were not disclosed.

MedPlast offers a range of engineering and manufacturing capabilities that support global OEMs in the diagnostics, orthopedic, surgical and other medical markets. The company employs more than 1,800 engineers, technicians and assembly workers who specialize in technical molding, advanced processing, device assembly and implantables with expertise in plastics, said a press release distributed today. Over the past five years, MedPlast has expanded its operations to encompass 11 ISO-certified facilities across the United States, China, Mexico and the United Kingdom.

MedPlast was founded in 2008 and acquired by United Plastics Group Inc. (Houston, TX) in April 2012. In June 2016, it announced the divestiture of UPG to a newly formed affiliate of Turnspire Capital Partners LLC (New York, NY). 

“MedPlast has well-established and trusted relationships with the world’s leading medical manufacturers who value the company’s high-quality standards that meet their demanding industry regulations,” said Peter Strothman, Partner, Water Street, in a prepared statement. “We will work with MedPlast’s team to expand its suite of capabilities into new areas to form a comprehensive, integrated portfolio of end-to-end product solutions,” he added.  

A $40 billion-dollar market, medical device services continues to grow as increasing numbers of OEMs turn to outsourcing providers to generate cost and time efficiencies, noted the press release. It is a highly fragmented sector with hundreds of providers offering design, engineering, manufacturing supply chain and logistics services.  

Medical device OEMs increasingly are seeking outsourcing partners that offer an array of services in a one-stop shop environment. Earlier this week, PlasticsToday reported on custom molder Flexan LLC acquiring Medron, a contract manufacturer serving the medtech industry, another example of this ongoing trend.

In the MedPlast press release, Daniel Agroskin, Partner, JLL Partners, commented on the potential of MedPlast to fulfill this need more expansively through targeted investments. The company “stands out for its healthcare expertise, extensive global footprint and breadth of high-quality capabilities,” said Agroskin. “Together with Water Street, we will invest our expertise and resources to expand MedPlast’s services into high-value areas and build on its strong base of long-term customer relationships.”

MedPlast is the second collaboration between JLL Partners and Water Street. The firms recently worked together to build Bioclinica Inc. into one of the world’s leading providers of specialty outsourced clinical trial solutions.

“Our partnership with JLL and Water Street is an important step toward achieving our goal of building MedPlast into an end-to-end services provider focused on the healthcare industry,” said MedPlast CEO Harold Faig. “For the past eight years, we have optimized our capabilities toward healthcare. This acquisition will give us access to expertise and resources to grow our core competencies into areas that will bring considerable value to our customers.”

About the Author(s)

Norbert Sparrow

Editor in chief of PlasticsToday since 2015, Norbert Sparrow has more than 30 years of editorial experience in business-to-business media. He studied journalism at the Centre Universitaire d'Etudes du Journalisme in Strasbourg, France, where he earned a master's degree.

www.linkedin.com/in/norbertsparrow

Sign up for the PlasticsToday NewsFeed newsletter.

You May Also Like