Tech Group Inc. has acquired a Grand Rapids, Mich., injection molding facility of Medtronic Inc.'s cardiac surgery business unit.
"The Grand Rapids facility will allow us to build our Midwest presence and develop additional opportunities with Medtronic and other [original equipment manufacturers]," Steve Uhlmann, Tech Group chief executive officer, said in a news release.
Medtronic, a major medical technology company, used the business as a captive molder to supply plastic parts to an assembly site in Grand Rapids.
"That operation will be a customer," said Jim Dolan, Tech Group vice president of sales and marketing.
A Medtronic sterilization facility also is nearby.
Tech Group has a long-term Medtronic supply agreement and also can mold for others.
The site operates 22 Arburgs and four Toyos with 28-110 tons of clamping force, and specializes in short to medium runs and low cavitation, Dolan said by telephone.
The 29,000-square-foot injection molding facility can accommodate more presses, and an adjoining four-story, 48,000-square-foot structure is available for storage or other functions.
Ted Chittenden and Mark Williams remain as engineering manager and operations manager, respectively. Both report within the contract manufacturing business unit to Mike Treadaway, Tech Group Americas vice president of operations.
Tech Group retained all 52 employees.
Medtronic acquired the Grand Rapids business, then called DLP Inc., for $128 million in 1994. At that time, DLP employed 320, had annual sales of $36 million and specialized in biopsy needles and a line of cannulas.
Minneapolis-based Medtronic reported profit of $1.1 billion on sales of $5.01 billion for the fiscal year ended April 30.
Both the Midwest presence and small-tonnage orientation in Grand Rapids represent differences from Tech Group's domestic locations.
Tech Group's contract manufacturing business operates three Arizona plants in Phoenix, Tempe and Scottsdale, and other sites in Cayey, Puerto Rico; Guadalajara, Mexico; Mulhuddart, Ireland; and Singapore.
Separate from contract manufacturing, Tech Group has medical-related operations stemming from acquisitions of Vollrath Group Inc. of Gallaway, Tenn., in 1999, and American Precision Plastics of Northglenn, Colo., in 1997.
In November, Tech Group said it planned to separate the Tennessee and Colorado medical-related business under current management and sell its packaging division units, Top Seal Corp. and Star Container Co. Both matters are pending.
Scottsdale-based Tech Group employed about 1,600 before the Grand Rapids acquisition and had sales of $188.4 million for the fiscal year ended June 24.
The deal closed Dec. 11 and was disclosed Feb. 27. Terms were withheld.