ITW Medical Products has purchased Coeur Holding Co., an injection molder and extruder of disposable medical products used in diagnostic imaging and other procedures.
Coeur is headed by Jay Cude, who also is chairman of the Washington-based Society of the Plastics Industry Inc. The Lebanon, Tenn.-based company had been owned since 2008 by Riverside Co., a Cleveland-based private equity firm. Terms of the sale were not disclosed.
Glenview, Ill.-based Illinois Tool Works Inc. is combining Coeur with its ITW Filtertek business to create the ITW Medical Products unit. Filtertek makes custom insert molded filtration and flow-control components.
In an Oct. 10 phone interview, Cude said both Coeur and Filtertek had seen double-digit growth from the medical sector in recent years.
Coeur “grew well” under Riverside's ownership, he said, and the relationship between the two firms overall was positive. But at the same time, Cude said he is “pleased to be with a strategic business” like ITW.
ITW officials “are managing folks, and they understand manufacturing,” he added.
Parent company ITW, a manufacturing conglomerate, recently started on a new strategy to focus on higher-growth markets. The Medical Products unit is headed by Law Burks, vice president and general manager.
Burks said Oct. 10 that ITW may look to make more acquisitions in the medical sector. “We're committed to the medical products space,” he added. “It makes sense for us to continue to invest in medical.”
Coeur has a molding and assembly plant in Washington, N.C., and a tubing extrusion and assembly plant in Sheboygan, Wis. The company also has a facility in Saltillo, Mexico, that assembles dispenser-coil and fluid-delivery products. Plastics News estimates Coeur's annual plastic tubing sales at $17 million, and its total corporate sales at $31 million.
Coeur also recently leased warehouse space near its Washington location in order to expand its clean assembly area.
Filtertek has operations in Hebron; Elk Grove Village, Ill.; Ciudad Juárez, Mexico; Shanghai; São Paulo; Newcastle West, Ireland; and Madrid. Plastics News estimates Filtertek's North American annual injection molding sales at $45 million.
ITW's Burks said there's now a possibility that Coeur products could be made at ITW locations: “There are a lot of similarities [with Filtertek and Coeur] in our customer base, so there are a lot of cross-selling opportunities.”
The acquisition comes after ITW divested all or part of two plastics-related businesses earlier this year. The major deal came in August when ITW sold a 49 percent stake in high-pressure laminates maker Wilsonart International to New York investment firm Clayton, Dubilier & Rice for just over $1 billion. In July, ITW sold its Minigrip resealable bag business to Inteplast Group Ltd. for an undisclosed price.
The ITW-Coeur deal leaves Riverside with only one plastics-related holding: PVC window extruder Sunrise Windows Ltd. of Temperance, Mich. Riverside has sold off four plastics-related businesses since 2008. But earlier this year, senior adviser William Seelbach said a resurgence in U.S. manufacturing might attract private equity firms such as Riverside.