Gaining a foothold in the U.S. medical market, Swedish firm Nolato AB has acquired medical molder Contour Plastics Inc. of Baldwin, now Nolato Contour.
In 2010, Nolato Contour is expected to record sales of $22 million, with more than 80 percent of that coming from the medical business.
This acquisition will give us a foundation on which to establish production in North America [and] a presence in the region from Minneapolis to Chicago which is one of four key medical technology clusters in the U.S., said Christer Wahlquist, head of Nolato's medical business, in a statement.
Nolato said the acquisition of Contour for $22 million, announced July 26, would have a marginal positive impact on its corporate earnings during 2010.
In fiscal 2009, Nolato's medical segment had $632 million in sales and earnings of $89 million.
That's the smallest business segment of Torekov, Sweden-based Nolato AB, representing just 27 percent of its $2.6 billion in sales in 2009. But medical accounted for nearly half, or 46 percent, of Nolato's 2009 earnings. The parent company employs nearly 8,000 and serves the medical, telecommunications, hygiene and automotive industries.
Contour founder Barry Grant will remain as president of Nolato Contour, which employs 180 at a 9,000-square-foot manufacturing plant that includes two clean rooms, in Baldwin.
Contour Plastics is a well-managed company, and is a good fit for our growth strategy and our ambition to provide a global offering with regional medical-technology production, said Hans Porat, CEO and president of Nolato.
Nolato's medical business has plants in Sweden, Hungary and China and focuses on drug-delivery products, catheter balloons, blood-collection systems and pharmaceutical packaging.