Plastics industry veterans Charles Stroupe and Jeffrey Goble continue to search for medical-device-related additions to their holding group, Providien LLC of Scottsdale, Ariz.
Providien plans to continue acquiring providers of contract manufacturing, assembly, engineering and design services in the medical-device market, along with selective medical-device companies, said Goble, president and CEO. Stroupe is Providien's chairman.
The final portion of their previous umbrella enterprise Scottsdale-based Medegen LLC was sold for $224 million to CareFusion Corp. of San Diego in May.
The principals formed Providien in June and promptly made two initial acquisitions: thermoformer Specialty Manufacturing Inc. of San Diego on July 1, and injection molder Plastics Engineering and Development Inc. of Carlsbad, Calif., on Sept. 30.
Both SMI and PEDI have a strong presence in the medical-device industry.
According to Plastics News' recent thermoformers ranking, SMI employs 58, operates 17 thermoforming lines and does estimated sales of $13.5 million. PEDI has 25 employees, 29 injection presses and had sales of $12.6 million for the fiscal year ended Sept. 30, 2009, according to PN data.
Stroupe and Goble, along with Portland, Ore.-based private equity firm Endeavor Capital, provide funding for Providien acquisitions and operations.
In an early move July 13, an Endeavor fund supplied Providien with $10.5 million, according to a filing with the Securities and Exchange Commission.
Providien acquired SMI from members of the Ames family and others. Jenny Ames became SMI president in 1997 and continues as a consultant. Her father, Frank Ames, co-founded SMI with Arthur Buckel and Dennis Williams in 1976.
Providien acquired PEDI primarily from Richard Witchey, who purchased the business in 1990. Jack Sparacio continues as PEDI president. PEDI was started in 1984.
Between them, the Providien entrepreneurs have more than 50 years of experience in relevant fields.
For many years more than a decade ago, Stroupe and Goble held major positions with Tech Group Inc. of Scottsdale, before branching out on their own.
In 2001, Stroupe and Goble acquired Tech Group's medical-products business, which they named Medegen and used as a business platform and holding entity.
Medegen made several other acquisitions, including Kipp Group from WebMD Corp. in 2003.
Medegen divested its medical-products division in October 2006 to Medical Action Industries Inc., now of Brentwood, N.Y., for about $80 million, and sold the remaining business operations to CareFusion last year.