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Private equity firms GTCR (Chicago) and Golden Gate Capital (San Francisco) are the last two bidders standing for medical device manufacturer Phillips-Medisize Corp (Hudson, WI), a deal that could reach $800 million, according to the Wall Street Journal (WSJ).

PlasticsToday Staff

April 29, 2014

1 Min Read
Phillips-Medisize gets ready to change private-equity partners

Private equity firms GTCR (Chicago) and Golden Gate Capital (San Francisco) are the last two bidders standing for medical device manufacturer Phillips-Medisize Corp (Hudson, WI), a deal that could reach $800 million, according to the Wall Street Journal (WSJ).

Phillips-Medisize reports annual sales of more than $500 million. Based on the expected sale price, WSJ estimates the value of the company at approximately 10 times its 2013 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $80 million. Goldman Sachs is reportedly managing the sale.

Phillips-Medisize manufactures a range of healthcare products, with about 75% of its total revenue coming from the drug delivery, medical device, primary pharmaceutical packaging, and diagnostics sectors, according to the company.

The current owner, Kohlberg & Co., bought Phillips Plastics Corp. in 2010. It acquired Netherlands-based Medisize Inc., a contract manufacturer of medical and pharmaceutical products, in 2011, and merged the two companies to form Phillips-Medisize. Kohlberg & Co. reportedly has been looking for a buyer since mid-January. 

Phillips-Medisize employs more than 3100 people in 19 global locations. As reported last week in PlasticsToday, the company has begun full-scale production of an injector pen at its facility in Suzhou, China, for the Chinese and Asia-Pacific markets. It trumpeted the start of production as a "cornerstone" of its China-for-China strategy.

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