MedSource Technologies Inc. added design, product development and tool building to its portfolio with the acquisition of Apex Engineering Inc. The deal also beefed up MedSource's growing injection molding capability.
MedSource bought the Pittsfield, Mass.-based company Jan. 31 from founder-president Donald Rochelo and his wife, Donna. Terms were not disclosed.
The Rochelos began Apex in 1983 in two rooms above a lawyer's office in Pittsfield.
"My vision is what we obtained: to be an art-to-part facility," Donald Rochelo said in a telephone interview.
But the company recently saw its profit dwindle as customers reduced their vendor base, Rochelo said.
"All of a sudden, we become a second- or third-tier supplier with no margin," he said.
Apex now employs 60, occupies 23,000 square feet and primarily develops and produces medical components and health-care products.
The company has five design engineers, who utilize Pro/Engineer software.
Mold-making capabilities include PowerMill and Mastercam software, five sinker and wire electronic discharge machines, five vertical, computer numerically controlled machining centers from Fadal; and three Compumill vertical CNC machines.
Apex operates 13 Niigata and Arburg injection molding machines with clamping forces of 40-385 tons; two are all-electric units.
Apex has invested more than $4 million in capital equipment, including $900,000 in the fiscal year ended April 30. Apex qualified for ISO 9002 certification in 1994.
Rochelo, who began talking to MedSource in June, will operate the business as a wholly owned subsidiary.
He continues as president of the 43-member Berkshire Plastics Network.
Plymouth, Minn.-based MedSource was created April 1 with the consolidation of seven medical component suppliers. On Jan. 11, MedSource acquired Tenax Corp.'s precision injection molding and assembly operations in Danbury, Conn.
The Apex acquisition reinforces MedSource's plan to offer complete supply services to medical-device customers, said Richard Effress, MedSource chairman and chief executive officer.