MGS buying N.Y. medical molding plant from Hospira

By Roger Renstrom
Correspondent

Published: April 17, 2014 10:19 pm ET
Updated: April 18, 2014 10:11 am ET

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms were not disclosed.

Members of the Hospira and MGS management teams announced the pending transaction to the facility’s employees April 14 and to the public on April 17.

The Hospira-owned plant employs 120, operates 40 injection molding machines with clamping forces of 100-400 tons and manufactures parts for Hospira’s pharmaceutical and device businesses.

Hospira employees at the Buffalo facility will join MGS. No layoffs are planned as part of the purchase.

Paul Manley, MGS chief operating officer and chief financial officer, said the deal represents a strategic move for both companies.

In a statement, Matthew Stober, Hospira senior vice president of operations, said, “MGS meets or exceeds the ISO and FDA guidelines for single-use disposable plastics manufacturing and will ensure supply continuity is maintained at all Hospira facilities.”

Germantown, Wis.-based MGS has extensive experience the molding of parts and designing, building and sampling molds for the medical device and drug delivery industries.

MGS said the components that the Buffalo facility produces fit squarely within its list of capabilities.

Buffalo will become the sixth molding facility for MGS. Others are located in Germantown; Libertyville and Antioch, Ill.; Chihuahua, Mexico; and Leixlip, Ireland.

Among MGS operations, a Guangdong, China, site provides engineering, design, project management and Universal-Multishot-System equipment sales and service. Specialty UMS equipment allows a molder to use standard injection molding presses as multi-shot machines.

Medical production accounted for 24.5 percent of 2013 sales of $165 million. Other major MGS markets were electronics at 18 percent and automotive at 17.5 percent.

Molding accounted for 68 percent of 2013 sales, tooling for 23 percent and equipment for 9 percent.

MGS began operations in 1982, occupies about 586,000 square feet, operates more than 215 presses and employs more than 1,200 including in excess of 100 toolmakers, designers and technicians; 70 quality personnel; and 25 program managers and project engineers.

Publicly traded Hospira of Lake Forest, Ill., employs about 17,000 and develops, manufactures, distributes and markets specialty generic and proprietary injectable pharmaceutical drugs and infusion technologies.

Hospira reported a loss of $8.3 million on 2013 sales of $4.00 billion versus a profit of $44.2 million on 2012 sales of $4.09 billion.

The 2013 loss included pretax charges of $226.9 million for allowances, customer accommodations and inventory charges for initial implementation of a device-strategy initiative to streamline and modernize Hospira’s product portfolio.

For 2013, markets in the Americas accounted for 79.6 percent of Hospira sales, Europe-Middle East-Africa for 12.7 percent and Asia-Pacific for 8.0 percent. Hospitals and wholesalers are Hospira’s primary customers.

In addition to the Buffalo site, Hospira has manufacturing capabilities in 13 other facilities in the U.S., Australia, Ireland, India, Costa Rica, Italy, Dominican Republic and Croatia.


Comments

MGS buying N.Y. medical molding plant from Hospira

By Roger Renstrom
Correspondent

Published: April 17, 2014 10:19 pm ET
Updated: April 18, 2014 10:11 am ET

Post Your Comments


Back to story


More stories

Image

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

Image

Large part molder EnviroTech in 'growth mode,' adds space, equipment

November 26, 2014 9:54 am ET

Salt Lake City-based EnviroTech Molded Products Inc. is adding new equipment and expanding its factory as it gains business in some of its...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013, an...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events