Phillips-Medisize sold to private equity group Golden Gate Capital

By Michael Lauzon
Correspondent

Published: May 7, 2014 4:01 pm ET
Updated: May 7, 2014 10:54 pm ET

Image By: Phillips-Medisize Corp. Phillips-Medisize Corp. has manufacturing in the U.S., Mexico, Europe and China.

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding

Medical molder Phillips-Medisize Corp. is being bought by private equity firm Golden Gate Capital.

The two firms announced a definitive agreement on May 7 and said the deal should close “in the coming months.” They did not disclose terms.

The announcement confirmed recent speculation that Kohlberg & Co. LLC was negotiating to sell the company. A recent Wall Street Journal report indicated the sale price could be as much as $800 million, or about 10 times Phillips-Medisize’s estimated earnings before interest, taxes, depreciation and amortization. Golden Gate would not comment on the figures, and Phillips-Medisize did not have any comment beyond the news release.

Phillips-Medisize of Hudson, Wis., is a major injection molder that says it does 75 percent of its business in health care applications such as medical devices, pharmaceutical packaging, drug delivery, glucose meters, drug inhalation devices, and disposable surgical devices and diagnostic components. The company also is a player in defense, automotive and consumer markets.

“Golden Gate’s financial support, successful track record of backing manufacturing companies and deep industry relationships will help perpetuate the company’s strong momentum and further solidify our market-leading position,” stated Phillips-Medisize President and CEO Matt Jennings in a news release.

Golden Gate of San Francisco lists its major portfolio industries as financial services, industrials and energy, information technology and business services, retail-related markets, software and technical hardware, telecommunications and semiconductors. It has no other health care related business but its industrial companies have expertise in design, production and supply-chain management. Golden Gate has about $12 billion in capital under management.

Phillips-Medisize provides a strong design and manufacturing platform with global scale, noted Golden Gate managing director Rajeev Amara in a news release. He indicated Phillips-Medisize is poised to grow from the trend among original equipment manufacturers to outsource medical component needs. Golden Gate will invest in the molder to support its growth, he added.

Phillips-Medisize said its annual sales are about $600 million. It had estimated North American injection molding sales of $275 million for the fiscal year ending in June 2012, according to data from Plastics News’ injection molders raking survey. Ten of its 11 North American injection molding plants are in Wisconsin, the other is in Mountain View, Calif. The survey estimated Phillips-Medisize had 228 injection presses and about 1,200 employees in North America.

Phillips-Medisize also has a manufacturing footprint in Europe, Mexico and China. Most of the European operations relate to Kohlberg’s acquisition of Dutch firm Medisize Inc. when they combined it with Phillips Plastics Corp. in 2011. At the time, Medisize’s 2010 sales were reported at about $170 million.

Phillips-Medisize expanded into China and Mexico in 2013 through acquisition. New business led it to expand its Finland operation this year.

In total, Phillips-Medisize employs more than 3,100 at 19 locations around the world.

Last October Jennings said his company will set up a design center in its Suzhou, China, plant. Current design operations are centered in Hudson and Mountain View.

Phillips-Medisize boasts that it helps medical products OEMs get new products to market quickly by offering integrated design, molding and automation services that drive costs down while ensuring high quality. In addition to thermoplastic injection molding and assembly, it has capacity for molding liquid silicone rubber, ceramics and magnesium along with other metals.

Kohlberg partner Chris Anderson said in a news release that his company is “pleased with the outcome of our investment in Phillips-Medisize.” Kohlberg bought Phillips in 2010.

Goldman, Sachs & Co. and Ropes & Gray LLP acted as financial advisor and legal counsel, respectively, for Phillips-Medisize. Robert W Baird was Golden Gate’s financial advisor and Kirkland & Ellis LLP was its legal counsel.


Comments

Phillips-Medisize sold to private equity group Golden Gate Capital

By Michael Lauzon
Correspondent

Published: May 7, 2014 4:01 pm ET
Updated: May 7, 2014 10:54 pm ET

Post Your Comments


Back to story


More stories

Image

Comar merging with Convergence Packaging

October 21, 2014 5:07 pm ET

A couple of plastic packaging companies owned by private investment firm Graham Partners are merging into a single entity.    More

Image

Celanese buys conductive polymer supplier

October 21, 2014 4:31 pm ET

Materials firm Celanese Corp. has acquired most of the assets of conductive polymers maker Cool Polymers Inc. for an undisclosed price.    More

Image

Report: SVP takes Klöckner Pentaplast off the market

October 21, 2014 4:19 pm ET

Plastic sheet leader Klöckner Pentaplast Group is no longer for sale, according to an Oct. 21 Reuters article.    More

Image

Wisconsin cast film maker buys Ohio blown film specialist

October 21, 2014 2:57 pm ET

A Midwest U.S. acquisition has created a company armed with two distinct film technologies: cast films and coextruded blown film constructions.    More

Image

Omega buys Vinylex, adds capacity, locations

October 21, 2014 1:48 pm ET

Profile extruder Omega Plastics LLC has expanded its stake in the market by acquiring Vinylex Corp.    More

Market Reports

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 million dollar 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

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

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

More Events