Lubrizol buys medical extruder Vesta

By Frank Esposito
Senior Staff Reporter

Published: August 5, 2014 12:55 pm ET
Updated: August 8, 2014 9:21 am ET

Image By: Vesta Inc. Vesta Inc. has extrusion, injection molding and insert molding.

Related to this story

Topics Mergers & Acquisitions, United States, Medical, Extrusion, Injection Molding, Insert molding

Lubrizol Corp. has ventured into the medical device market by acquiring Vesta Inc., a maker of catheters and tubing based on silicone and thermoplastics.

No purchase price was disclosed in an Aug. 1 news release that announced the deal. Franklin, Wis.-based Vesta had been owned by RoundTable Healthcare Partners, an investment firm in Lake Forest, Ill.

“The addition of Vesta significantly enhances our life science offerings through the combination of strong polymer technology, applications know-how and world class component manufacturing,” Lubrizol’s Deb Langer said in the release. Langer serves as LifeSciences general manager for the Wickliffe, Ohio-based firm.

Vesta now will be part of Lubrizol Advanced Materials, which includes market-leading Estane-brand thermoplastic polyurethane. Vesta operates three U.S. manufacturing sites that perform silicone molding, extrusion, sheeting, dip-casting and assembly, as well as thermoplastic tubing extrusion, assembly and secondary operations.

The 42-year-old firm has a long history of medical design engineering experience with clinical device applications in cardiology, urology, wound care and bariatrics, officials said.

Vesta was acquired by RoundTable in 2007 and grew by acquiring thermoplastic medical tubing maker ExtruMed LLC in 2009 and silicone products maker SiMatrix in 2011. It has about 450 employees.

After acquiring ExtruMed, Vesta built a new production site in Corona, Calif., to replace nearby ExtruMed plants in Placentia and Temecula. In 2011, Vesta also completed an expansion that doubled the size of its Franklin plant to 120,000 square feet.

At the 2011 Plastics News Plastics in Medical Devices conference, RoundTable senior partner David Koo said that the medical device market was attractive to large corporate buyers.

“Larger industrial companies are looking to get into the medical market because of its higher growth,” he said.

Lubrizol employs 7,500 worldwide and posted sales of $6.4 billion in 2013. The firm expanded beyond its core lubricants market in 2004 when it acquired specialty plastics maker Noveon Inc. Lubrizol has been owned since 2011 by the Berkshire Hathaway investment firm.

Plastics market analyst Robert Eller described the Vesta acquisition as a forward integration for Lubrizol.

“TPU is an important material of choice for these extruded medical products,” said Eller, president of Robert Eller Associates LLC in Akron, Ohio. “And medical is a [thermoplastic elastomer] growth market.”

By acquiring Vesta, Lubrizol “will gain control over quality and capture value-added,” he said, adding that Lubrizol will gain silicone technology through the deal while being able to offer a range of polymers to the medical segment.


Comments

Lubrizol buys medical extruder Vesta

By Frank Esposito
Senior Staff Reporter

Published: August 5, 2014 12:55 pm ET
Updated: August 8, 2014 9:21 am ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Dunkin' Donuts looking at PP to replace foam cups

September 19, 2014 3:22 pm ET

Dunkin' Donuts is testing a new polypropylene coffee cup that the company believes could help boost recycling.    More

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    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

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

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events