Trelleborg Sealing Solutions (Fort Wayne, IN), a subsidiary of Sweden’s Trelleborg A.B., announced yesterday that it has finalized the acquisition of Sil-Pro LLC, a privately owned contract manufacturer of high-tolerance silicone and thermoplastic components based in Delano, MN. Total sales in 2017 amounted to about SEK 350 million ($37.6 million), according to a press release distributed by Trelleborg.
|Image courtesy Sil-Pro.|
Founded in 1998, Sil-Pro initially established a reputation as a supplier of silicone injection molding services to medical device OEMs. Over time, it added thermoplastic injection molding and over molding, silicone extrusion, assembly and packaging, and full device manufacturing services to its portfolio. In 2016, it began an $11 million expansion with the intention to add 50,000 square feet to its then 85,000-square-foot plant in Delano.
Trelleborg characterized the Sil-Pro acquisition as a bolt-on initiative that is part of a strategy to “strengthen its positions in attractive market segments.”
In 2016, Trelleborg acquired Tustin, CA–based Specialty Silicone Fabricators Inc. (SSF), a privately owned manufacturer of silicone components for the medical device industry. SSF reported sales of approximately $38.5 million in 2015.
The medical silicone market is expected to see robust growth over the next few years to the detriment of rubber and plastics, according to analysts. The global demand for liquid silicone rubber is forecast to reach $3.29 billion by 2025 and increase at a compound annual growth rate (CAGR) of 7.9%, according to Grand View Research Inc. Medical is the fastest growing segment over the forecast period, with an estimated CAGR of around 9% from 2016 to 2025.