The former Tech Group Medical Products has a new name and a new owner, and has acquired some assets of Spinner Medical Products Co. Inc.
All three changes became official May 30. Terms of the sale and the acquisition were not disclosed.
The new name is Medegen Holdings LLC, and the new majority investor is equity investor Nautic Partners LLC of Providence, R.I.
Before adopting the Medegen name, the business had operated independently for 16 months as Tech Group Medical Products with offices in Scottsdale, Ariz. Chief Executive Officer Charles Stroupe formed the company in February 2001 with a management buyout of two medical molding operations from Tech Group Inc.
Existing Medegen Medical operations are Vollrath Group Inc. in Gallaway, Tenn., and American Precision Plastics in Northglenn, Colo.
In the Spinner acquisition, Medegen subsidiary Medegen Medical Products LLC added the business activities of Premium Plastics Inc. of Chicago, Sterling Disposable Products Inc. of Chicago and General Clinical Plastics Corp. of La Mirada, Calif.
Spinner, a closely held Chicago firm, retains the two Chicago sites and agreed to supply Medegen with products for 90 days.
Medegen purchased the entire La Mirada operation and will transfer part of the Chicago business and equipment to the La Mirada facility and to Medegen's existing sites.
Under Singer, the operations molded and distributed disposable medical products such as patient utensils, specimen containers, sterile nursing care kits and medical, surgical and laboratory trays.
The three Spinner manufacturing sites have employed 335 and generated annual sales approaching $35 million. Some workers may relocate from Chicago to Medegen's Tennessee or Colorado plants, but an undetermined number of Chicago employees will lose their jobs.
The Singer units have operated 38 injection molding presses with clamping forces of 140-500 tons and four blow molding machines. Most of the molding has been done in La Mirada.
``Premium Plastics is a well-established business,'' Stroupe said in a news release. ``We believe this combination will ultimately create value for all parties in the supply chain.''
With the Singer additions, Medegen employs 590, operates 92 injection molding presses of 140-950 tons and seven blow molding machines, and has total annual sales exceeding $90 million, Jeff Goble, vice president for strategic business development, said by telephone.
In addition to Stroupe and Goble, the Medegen founders were Mark Dorris, president of the Medegen Medical unit; Mike Stanley, chief financial officer; and Paul Ellis, group vice president of integrations.
The five former Tech Group executives owned all of Medegen until May 30.
Nautic obtained majority ownership through an undefined equity investment. The source, Nautic Partners V LP fund, closed for participation July 31 after raising $1.08 billion. The fund targets investments of $25 million to $75 million.
Medegen's management team has ``delivered an impressive historical record of revenue and earnings growth in competitive markets,'' said Scott Hilinski, a Nautic managing director.
Nautic Partners, initially known as Navis Partners, became the independent successor to FleetBoston Financial Corp.'s private equity affiliate Fleet Equity Partners in July 2000.