HUDSON, WIS. (July 8, 12:30 p.m. ET) — In one fell swoop, Phillips Plastics Corp. has entered the European medical plastics market, after buying Medisize Corp., which does clean room injection molding at factories in Finland, the Netherlands, Ireland, Switzerland and the Czech Republic.
All of Phillips Plastics' 14 existing plants are in Wisconsin.
Phillips Plastics paid about 99.8 million euros ($143 million) to buy Medisize, which is based in Vantaa, Finland, from Swedish private equity conglomerate Ratos AB.
A news release from Phillips Plastics said the acquisition creates a company with combined sales of just under $500 million and makes Phillips “one of the medical industry's largest and most complete global providers of outsourced medical design and manufacturing services.”
According to Plastics News' injection molders ranking, Phillips Plastics runs 228 injection molding machines and generated fiscal 2010 sales of $250 million, making it the 16th largest injection molder in North America.
Phillips employs 1,400.
Publicly traded Ratos reports that Medisize 2010 sales totaled 127.8 million euros ($168 million), and an operating profit of 12.6 million euros ($16 million).
Medisize reports on its website that all manufacturing takes place in Class 7 clean rooms. The company runs a total of 132 injection presses, ranging in clamping force from 25 to 250 metric tons, and 27 blow molding machines. Plastics processing technologies include insert molding, two-component molding, silicone molding, liquid injection molding, injection blow molding and injection stretch blow molding.
In a news release announcing the move, Phillips President and CEO Matthew Jennings said Medisize has strong capabilities in “high-volume manufacturing and high-speed automation.” He also praised the management team and said that Willem van den Bruinhorst will continue as president of Medisize, which will continue to operate under its own name as the European division of Phillips Plastics.
Jennings could not be reached for further comment for this story.
Bruinhorst said joining the two companies will provide a broader range of technologies to serve global customers.
Announced July 8, the deal comes seven months after Phillips founder Robert Cervenka sold the Hudson, Wis.-based injection molder and contract manufacturer to Kohlberg & Co. LLC, a private equity firm in Mount Kisco, N.Y. The firm was founded by Jerome Kohlberg Jr., who co-founded Kohlberg Kravis Roberts & Co.
At the time, Kohlberg & Co. said Phillips was going to become more global. In April, the new owner brought in Jennings as the top executive, replacing CEO Brad Wucherpfennig. Jennings has a medical background, running the North American medical division of Teleflex Inc., a medical device maker, and bioscience company BioEnterprise Corp.
Medisize, which employs 850, makes medical products in four areas: drug delivery devices, including injector pens for insulin, syringes and inserters; pharmaceutical packaging such as bottles and applications bags; medical and diagnostic devices, including pumps, tube sets and catheters; and airway management products such as filtration devices and breathing circuits.
Here are the Medisize plant locations: Lehmo, Finland; Hillegom, the Netherlands; Lettterkenny, Ireland; Nürensdorf, Switzerland; and Trhové Sviny, the Czech Republic.
Besides medical, Phillips Plastics' other key end markets include automotive, defense and consumer products.
The Wisconsin-centric company ventured over to Europe back in 1992, building a plant in Wales. Phillips later formed a joint venture there with Nypro Inc. before selling the operation two years later.