Phillips-Medisize may be up for sale

By Gayle S. Putrich
Staff Reporter

Published: April 28, 2014 1:47 pm ET
Updated: April 28, 2014 1:52 pm ET

Image By: Phillips-Medisize Phillips-Medisize Corp. estimates its 2013 North American injection molding sales at $275 million.

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding

Medical device maker Phillips-Medisize Corp. may be about to pass from the hands of one venture capital group to another in a potentially $800 million deal, according to a report from the Wall Street Journal.

The report says three unnamed sources familiar with the process have confirmed that private-equity firm Kohlberg & Co., which bought Phillips Plastics Corp. in 2010, has been shopping the firm around since January and may have a bidding war going between private-equity firms GTCR and Golden Gate Capital.

The report also says the $800 million price tag would value the company about 10 times its 2013 earnings before interest, taxes, depreciation and amortization of $80 million. Goldman Sachs Group Inc. is managing the sale process, according to the WSJ.

Phillips-Medisize representatives could not be reached for comment Monday morning.

Privately held, the company does not release detailed revenue figures but publicly estimates its 2013 sales as over $500 million with an estimated $275 million in North American injection molding sales, making them the 20th largest company in Plastics News injection molders rankings.

According to the WSJ, the ongoing private-equity interest in Phillips-Medisize is part of a trend of outsourcing among medical device companies to lower costs and speed new devices to market by getting help with product design, regulatory consulting, and testing and validation. Private equity is in purchase mode, with low interest rates and a more active selling environment than has been seen in recent years, though those firms typically seek to make a return on investment in four to seven years and then sell again, unlike strategic buyers looking for integration or market growth. With the global medical device market expected to pass $300 billion by 2017, Phillips-Medisize is an attractive grab.

Kohlberg combined Phillips with Medisize Inc., a Dutch processor of medical devices and pharmaceutical packaging, forming Phillips-Medisize in 2011. The Hudson, Wis.-based company is celebrating 50 years of continuous operations in 2014 and now counts 80 percent of its total revenue coming from drug delivery, medical device, pharmaceutical packaging and diagnostic products. The company says its core competency is the integration of design, molding, and automation to drive low-cost and high-quality manufacturing solutions.

Phillips-Medisize employs more than 3,100 people in 19 locations throughout the United States, Europe, Mexico and, most recently, China, where last week full-scale production of a finished injector pen for the Chinese and other Asian markets began. 

“The start of production signifies the successful execution of our China-for-China strategy,” said company president and CEO, Matt Jennings, in an April 24 press release. “The global Phillips-Medisize team is very excited about the attainment of this milestone, as it validates our fully-integrated capabilities for customers that desire products designed specifically for the China/Asia market and manufactured in a Chinese facility, all with state-of-the-art western medical quality systems and procedures.“ 

Phillips-Medisize is also expected to open a design/development center in Suzhou, China, later this year.


Comments

Phillips-Medisize may be up for sale

By Gayle S. Putrich
Staff Reporter

Published: April 28, 2014 1:47 pm ET
Updated: April 28, 2014 1:52 pm ET

Post Your Comments


Back to story


More stories

Image

Tessy investing $10 million in new plant, infrastructure

July 30, 2014 4:57 pm ET

Tessy Plastics Corp. continues to buy factory buildings in upstate New York — acquiring a 112,000-square-foot former Honeywell building in...    More

Image

Castle Harlan buys landscape erosion control firm Tensar

July 30, 2014 3:46 pm ET

Private equity group Castle Harlan inc. has acquired Atlanta-based Tensar Corp., with plans for the geosynthetic products maker and its subsidiaries...    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events