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 Medical, Mergers & Acquisitions, Injection Molding, Extrusion, United States, 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

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China,...    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Image

Kingspan adds more European production with Joris Ide acquisition

January 27, 2015 10:30 am ET

Kingspan Group plc has purchased insulated panels and building systems supplier Joris Ide Group for 315 million euros ($356 million).    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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